FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews
43 348.81

Euro up ahead of ECB

22 January 2021

Fears of prolonged shutdowns in Europe’s major economies and the slow rollouts of vaccines are the main reasons why the euro has been underperforming lately, although the single currency did manage to join in the Biden rally, recovering back above the $1.21 level.

Uncertainty ahead of the European Central Bank’s policy decision today (12:45 GMT) had contributed to the euro’s earlier selloff yesterday following reports that the Bank is targeting Eurozone yield spreads. However, even if President Lagarde confirms such a policy in her press conference today (13:30 GMT), it’s unlikely to lead to anything that resembles yield curve control, at least not anytime soon.

It’s also not clear how dovish the ECB will be today given that despite all the present gloom, growth forecasts for the second half of 2021 remain optimistic. Policymakers still have more than €1 trillion left in the pandemic emergency purchases envelope so any dovish remarks will likely be for the sake of talking down the euro.

Pound, aussie and kiwi charge higher as dollar skids, loonie pauses for breath

Elsewhere in the FX sphere, the US dollar took a big hit from the optimistic tone, falling to a one-week low against a basket of currencies. The pound and kiwi were the biggest gainers as traders scaled back expectations of rates turning negative in Britain and New Zealand. Bank of England Governor Andrew Bailey once again cast doubt on the benefits of below-zero rates in remarks yesterday.

The aussie was lifted by encouraging employment numbers out of Australia today, while the Canadian dollar was catching its breath after shooting higher on Wednesday following the Bank of Canada meeting. The BoC is looking past the current economic challenges and pinning its hopes on a strong economic rebound later in the year, dashing expectations of a ‘micro rate cut’.

Another central bank standing pat in the last 24 hours was the Bank of Japan. As expected, though, the yen took its cues from the broader risk sentiment, slipping against its peers today.



Stock Futures Up Ahead Of Fed Meeting
Stock Futures Up Ahead Of Fed Meeting

Futures in the United States and Europe are trading higher today, as investors focus on China’s Evergrande whirlwind, which has even overshadowed the Federal...

22 Sep 2021

Gold's sudden glow in a falling market
Gold's sudden glow in a falling market

Gold's ability to resist the general downtrend speaks to investor confidence that global central bank policies will remain soft enough to avoid triggering a global downward asset sell-off spiral...

21 Sep 2021

Forex and Cryptocurrency Forecast for September 20-24, 2021
Forex and Cryptocurrency Forecast for September 20-24, 2021

The dollar continues to strengthen, and the EUR/USD pair moves south. Starting on Monday September 13 at 1.1810, it ends the five-day run at 1.1730. The movement...

20 Sep 2021

Gold and Silver looking into the abyss
Gold and Silver looking into the abyss

Strong US data revived bets on an imminent QE rollback from the Fed, supporting the dollar and causing bond yields to rise. The news triggered a more than 2% plunge in gold prices...

17 Sep 2021

Stocks pick up some bid after textbook SP 500 bounce
Stocks pick up some bid after textbook SP 500 bounce

European stock markets were modestly higher on Thursday after a rebound in the US and another dip for Asian equities overnight. Hong Kong down 1.7%...

16 Sep 2021

Stock Futures Trade Lower, Investors Worry About Fed Tapering
Stock Futures Trade Lower, Investors Worry About Fed Tapering

US and European futures are trading lower today, following a retracement in US indices. The Dow Jones Industrial Average fell nearly 290 points, wiping out gains...

15 Sep 2021

Editors' Picks

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.