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  
US Jobless Claims Lowest Since 1973

US Department of Labor released Initial Jobless Claims for the week ending October 13th that showed a resilient and stable labor market...

Politics Influence Markets

With fears abating surrounding the threat of Catalan independence, the EUR moved higher overnight. Catalan President Puigdemont stated...

US Unemployment at Lowest Level

On Friday, the US Department of Labour released Nonfarm Payrolls for September. The meagre forecast of 88K was beaten with an even worse...


Further Strong Data From the US

On Wednesday, the US Institute for Supply Management (ISM) released Non-Manufacturing PMI for September that surprised the market...

Upbeat Data Boosts Dollar

On Monday, the US Institute for Supply Management (ISM) released data showing the index of national factory activity surged to a reading...

Harvey & Irma Effects Still Evident

The EUR suffered a second day of selling pressure, as the markets are growing concerned that the rise in right wing nationalism witnessed...


Risk-On or Risk-Off?

The rhetoric continues between North Korea and the United States with North Korea’s Foreign Minister, Ri Yong Ho, describing President Trump’s recent comments as “tantamount...

German & New Zealand Elections

The results of the German Election have re-elected Chancellor Angela Merkel for a fourth term. Her CDU party won fewer votes than was expected and Chancellor Merkel...

Fed Holds Rates for Now But...

Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that...

  


Share: