The week of reckoning

November 30, 2015

Moving into December, it’s usually the time when markets start winding down for Christmas. As it is, there are two key events that will shape the month, the first of which arrives this week in the form of the ECB meeting on Thursday. The anticipated policy divergence between the ECB and the Fed has been a key driver on EURUSD since the middle of October, since when the dynamics on respective 2Y interest rates (which embody short-term rate expectations) have been moving firmly in favour of the dollar and against the single currency. The dollar index is once again nudging the 100 level this morning, whilst EURUSD is being pressured below the 1.06 level as the dynamics continue. What is true is that there is a huge burden of expectations on the ECB for this Thursday, meaning that if the ECB falls short of expectations, we’re going to be heading for a very large short squeeze on the euro.

Ahead of then, we have the initial readings of November inflation data in Germany at 13:00 GMT, with the market looking for the headline rate to move up from 0.3% to 0.4% in YoY terms. Many inflation rates are set to move higher over the coming months as the sharp fall in energy prices seen a year ago falls out of the YoY calculation. Elsewhere, on the crosses, EURJPY continues to set on the 130 level, with a push below still on the cards.

Publication source
FxPro information  FxPro reviews

October 27, 2016
Sterling falls notwithstanding UK GDP
On Thursday, the British pound sagged against the greenback, notwithstanding data on third quarter growth showing that Britain’s economy shrugged off the immediate shock of the Brexit referendum...
October 27, 2016
Dollar falters but strength remains ahead of jam-packed week
The US dollar has taken a bit of a breather this week as it consolidates its recent gains ahead of major economic data and events in coming days. For around a month, the greenback has been on an exceptionally sharp incline as expectations for a Federal Reserve rate hike this year have progressively increased...
October 27, 2016
Oil slides on OPEC uncertainty
WTI Crude received a pummelling on Tuesday with prices sinking below $49.50 after reports displayed an inflated rise in U.S inventories which revived concerns over the excessive oversupply in the markets...

FIBO Group Rating
Fort Financial Services Rating
XM Rating Rating
FxPro Rating
FXTM Rating

Porter Finance Rating
24option Rating
Beeoptions Rating
EZTrader Rating
Grand Option Rating
TopOption Rating