The only way is down for now

11 March, 2015

For the single currency, down appears to be the path of least resistance, the daily chart showing only one positive close so far this month (Monday) on EURUSD. For sure, this has been a time of dollar strength, helped by the latest US employment report, but only the Norwegian Krone has depreciated more than the euro over this time (leaving aside the Brazilian Real). The interesting thing is that already the ECB is struggling to find bonds to purchase in Germany, because they said that the deposit rate (at -0.20%), is as low as they will go in terms of yields. This has already ruled out some bonds in Germany. Still, whilst yields are being crushed, so in the single currency. EURGBP is now close to 0.7000, having pushed above 1.40 on GBPEUR yesterday, which is how the UK media and public like to look at it. Naturally, there is an increasing risk that the one-way traffic on the EUR reverses at some point, but calling this continues to look like a dangerous game.


Source link  
Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...

Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...


Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

Risk-sensitive currencies on the rise

Stock markets show growth after the release of strong data for China and Japan as their respective PMIs were better than expected which supported...

Trump again puts pressure on OPEC

President Donald Trump told OPEC on Thursday that its members should start pumping more oil, marking his second warning to the producer group this year...


Turkish lira fell by 5% before elections

The Turkish lira dropped by as much as 5 percent against the dollar on Thursday morning, as the country gears up for elections this weekend. The greenback...

May won't ask for a long Brexit delay

Prime Minister Theresa May won't ask the European Union for a 'long' delay to the Brexit deadline, her office said, after pro-Brexit ministers objected...

Demand for safe assets grows

Markets remain under moderate pressure, despite the Fed comments. Powell's semi-annual speech in Congress reinforced expectations that the US Central Bank...

  


Share it on:   or