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

January 18, 2017
Trump kicks the Dollar down
Trump hinted in his interview to the Financial Times that the US Dollar went for a far too extensive rally and the enthusiasm surrounding the bulls needs to be cooled...
January 18, 2017
Fed speakers, BoC and UK employment
We are going to see some central bank action (Canada) and hear from some Fed members and the chairwoman today. Apart from that we will get more information on the UK labor market and a data package from the US, including CPI for December and industrial output...
January 18, 2017
Aussie dollar cracks major levels
The Australian dollar swung heavily today as US bulls finally looked to sell off in the wake of economic uncertainty around the United Kingdom...

FOREX.com Rating
Tickmill Rating
Orbex Rating
XTB Rating
FBS Rating
FXCM Rating

Empire Option Rating
OptionFair Rating
Grand Option Rating
EZTrader Rating
365BinaryOption Rating
Porter Finance Rating