The euro snapback

5 October, 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.


Source link  
Oil at $100: how will it affect economy?

Brent crude has risen about 33 percent this year and is close to the highest in six months. While higher prices due to strong demand typically reflects...

Oil sector will lose 95% by 2050

Companies in the oil and gas sector, including large groups such as Shell, BP and Exxon, could lose 95% of their value by 2050 if governments...

The US economy recession by 2021

In a recent survey, most business economists believe the U.S. will fall into recession by 2021. Days after the market euphoria over a ceasefire in the...


Fed plans some further hikes

The U.S. Federal Reserve raised interest rates on Wednesday, as expected, but forecast fewer rate hikes next year and signaled its tightening cycle is nearing...

Pound to remain in Limbo

The British pound hit its lowest level in over 20 months yesterday before recovering in today's trading session on the back of a decision by British Prime...

Stocks Fall Amid China Worries

European stocks slid, following a retreat in Asia, amid growing concerns about a slowdown in China and policy makers steps to address it. The dollar advanced...


Why $70 is so Important for Brent

October was a brutal month not only for the U.S. IT-Companies. Crude oil prices also had significant and important shifts. After renewing the 4-year highs...

Is the 'extreme fear' over now?

Chinese equities are developing a rebound on Friday, supported by the hopes for progress in China and the US trade negotiations. The telephone...

Dollar is waiting for what Powell says

The U.S. dollar has returned to growth on the comments from the Fed officials about the need of further rates increases this year and next one. At the end...

  


Share it on:   or