The euro snapback

October 5, 2016

The single currency has been most notable for the ever tighter trading ranges that have been in evidence in recent weeks. There was a slight wobble to that yesterday as the single currency gained on a story suggesting that the ECB would consider ‘tapering’ bond purchases ahead at some point next year. Officially the program is set to end March 2017, although the ECB President has said that it could continue beyond that. This is one of those stories based on ‘sources’, so some may take it with a pinch of salt. But beneath the surface is probably an underlying concern that the ECB needs to be very cognisant of the impact of bond purchases and the increased ownership that the ECB is taking on. Some, especially Germany, are increasingly uncomfortable with that.

Elsewhere, the sterling headline writers had their day yesterday as sterling hit mid 1980s lows after a new leg lower was initiated in the wake of the weekend announcement of a deadline to the triggering of article 50. This has brought forth bearing calls once again for the year end, as the Brexit debate takes over from the economic data as the main driver of the currency. Over the past week though, EURJPY has been pretty steady as the Japanese currency has pulled back from the 100 level on USDJPY. For today, there is some more US data to offer distraction ahead of the US jobs numbers on Friday. The dollar continues to see creeping strength on the basis of a December rate increase.

Publication source
FxPro information  FxPro reviews

February 17, 2017
Golds rally may falter
The gold price has racked up its 2nd straight day of gains today on the back of US dollar weakness and doubts over an interest rate hike next month from the US Federal Reserve...
February 16, 2017
Where is black gold heading?
The Euro is slowly going down and this is not brought on by the Eurozone situation. Instead, this is fueled by the U.S. Dollar. Yesterday, Janet Yellen gave a speech in the Senate Banking Committee emphasising the fact that it Is not quite right to use the wait-and-see stance regarding the interest rate hike...
February 14, 2017
Will France exit the euro?
The Euro has come under pressure late in the European session today, after analysts warned of the huge costs that France would face should they decide to ditch the European currency...

OctaFX Rating
FXCM Rating
FIBO Group Rating
Orbex Rating
Fort Financial Services Rating
Vantage FX Rating

Migesco Rating
Anyoption Rating
OptionFair Rating
99Binary Rating
TopOption Rating
24option Rating