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  
Could USD Rebound?

The FOMC released its May meeting minutes last evening stating that the overall economic assessment was little changed...

Eyes on US Retail Sales

Friday May 12th will see the release of a set of crucial US data for April at 13:30 BST; retail sales, retail sales excluding autos, CPI and core CPI....

Fed Expected to Keep Rates Steady

It is reported that Fed Chair Yellen is not due to hold a press...


Will Q1 GDP Show a Recovery?

The UK and the Eurozone Markit Manufacturing PMI for April will be released today at 09:30 BST...

Will US Q1 GDP Growth Show a Slowdown

This will be the first US GDP figure reported after Trump took office...

USD Rallies

Last Friday US non-farm payrolls for March rose by only 98K, which was far below expectations of 180K, marking...


How Will FOMC Minutes Affect USD?

The dollar index hit a 3-week high of 100.59 yesterday. However, it pulled back after testing the near-term major resistance...

EUR/GBP Bulls Retreat Under Resistance

The European Central Bank president Draghi will make a speech at 15:30 BST today...

Second Scottish Referendum Hits GBP

Tuesday evening, March 28, the Scottish parliament has voted by 69 to 59, in favour of holding a second independence...

  


Share: