ECB bringing volatility

22 October, 2015

For the past four sessions, EURUSD has been confined to the 1.13 handle throughout the trading sessions, another illustration of the falling volatility we’ve seen over the recent times. It would be hard to see this continuing today, with the ECB meeting taking place. The chances of further policy measures look to be slim at this point in time. Their quarterly survey of the credit conditions this week suggested that lending conditions were improving, but there remain concerns regarding the pace of recovery and continued low or negative inflation. The two primary reasons for not expecting any action today are the fact that we’ve not had strong hints from the central bank and also the options need to be explored, because simply buying more bonds on a monthly basis is not an easy option for them to enact.

As such, and given the level of the currency (helped by the weakness of the dollar), the market will be listening closely for any comments around the currency, given the proximity of the 1.15 level around which the ECB has tended to look a little more closely. The press conference starts at 12:30 GMT today. Leaving the ECB aside, we have retail sales data in the UK, released at 08:30 GMT, where 0.4% gain on the headline measure is expected. There is also the weekly claims data in the US and Existing Home Sales data at 14:00 GMT. EURJPY still worth watching ahead of the ECB, sitting above trendline support which currently comes in at 135.48.


Source link  
CB meetings dominate the week

With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled...

No Surprises from BoC & ADP

In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated...

Moderate Gains for USD

On Monday, the US Commerce Department released Factory Orders data for October, indicating that the continued strength in the Manufacturing...


OPEC Extends Output Cuts

On Thursday, OPEC (Organization of Petroleum Exporters) and non-OPEC producers led by Russia agreed to keep output cuts until the end of 2018...

US Economy Expands Faster Than Predicted

Data released on Wednesday showed that the US economy expanded at its quickest pace since 2014 in Q3. The US Commerce Department said that...

Political Turmoil in Germany Hurts EUR

The EUR lost ground against many of its peers on Monday on news that Chancellor Angel Merkel’s efforts to form a coalition government had collapsed...


USD Suffers on Subpoena News

The Trump Administration is back in the spotlight with news of a report that Special counsel Robert Mueller’s investigators have issued a subpoena...

Positive data negated by tax plan opposition

The US Labor Department released data on Wednesday showing the consumer price index edged up by 0.1% in October after climbing by 0.5%...

Data Boosts EUR Can CPI Boost USD?

EUR received a boost on Tuesday, as data from Destatis showed German Preliminary GDP climbed to 0.8% in Q3, beating forecasts of 0.6%. In addition...

  


Share: