The message that ECB president Mario Draghi sent was very calm and puts faith in temporary factors. Energy and food prices, austerity and also the bank stress tests are all to blame for low inflation, which he doesn’t see as materializing to outfight deflation. However, there is one factor that wasn’t mentioned in the press … “Analysis: ECB expects the situation to sort itself out,”
Month: February 2014
Dollar Index Lower For Now, But Support May Come
The US dollar index is lower for now, but more support for the greenback might be in the future. For now, the dollar is lower against the euro, as well as the yen, but it could find support if the economic situations in the eurozone and the United Kingdom don’t improve anytime soon. Right now, the US dollar is lower, following the news that the ECB and BOE aren’t planning on adjusting interest rate policy — at least not … “Dollar Index Lower For Now, But Support May Come”
Euro Sees Gains Following ECB Decision
The latest ECB decision is providing a bit of confidence for the euro, resulting in gains for the 18-nation currency. However, the gains might be short-lived, depending on what ECB President Mario Draghi has to say about the future of the eurozone’s monetary policy. The euro is recovering from some of its earlier losses today, thanks to the fact that the European Central Bank decided not to take action and cut rates. Many had thought that … “Euro Sees Gains Following ECB Decision”
ECB Preview: 5 scenarios – negative deposit rate now, or
The European Central Bank convenes in February as the level of inflation remains stubbornly low, and the economic recovery remains fragile. Will the low inflation push the ECB to cut its rates again, and this time by setting a negative deposit rate? Will the ECB use other tools or settle for hints? This option is … “ECB Preview: 5 scenarios – negative deposit rate now, or”
Bank of England Makes No Move Regarding Monetary Policy, Sterling Flat
The Great Britain pound traded sideways today, and the Bank of England provided the currency little help in finding direction as it has left the monetary policy unchanged, in line with traders’ expectations. The BoE announced today:â The Bank of Englandâs Monetary Policy Committee today voted to maintain Bank Rate at 0.5%. The Committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion. Market participants expected … “Bank of England Makes No Move Regarding Monetary Policy, Sterling Flat”
Unexpected Trade Surplus Makes Aussie Stronger
The Australian dollar advanced today as the nation’s trade balance posted an unexpected surplus in December. Reports about retail sales and business confidence were also good, adding to the strength of the currency. Australia’s trade surplus widened from A$83 million to A$468 million in December, while analysts have predicted a deficit of A$270 million. Retail sales grew 0.5 percent in December from November. The National Australia Bank business confidence index rose … “Unexpected Trade Surplus Makes Aussie Stronger”
Aussie Weak on Concerns About China, Does Not Fall Far
The Australian dollar was a bit soft today on concerns about slowing economic growth in China. The currency did not fall far after yesterday’s big jump, and it looks like the Aussie has bottomed out, ending the downtrend. Analysts estimated that the growth of China’s gross domestic product may slow from 7.7 percent in 2013 to 7.4 percent in 2014. It is still a robust value compared to many other … “Aussie Weak on Concerns About China, Does Not Fall Far”
Economic Data Does Not Help Dollar Establish Trend
The US dollar was not able to establish a definite trend today as macroeconomic data was mixed and did not provide a clear picture of the US economic health. The greenback was down against the Japanese yen and a bit lower versus the euro, but rose a little against the Great Britain pound. The employment report from Automatic Data Processing demonstrated growth by 175,000 in January. It was noticeably below the expected value of 197,000 … “Economic Data Does Not Help Dollar Establish Trend”
What’s Next in Store for the Euro In 2014?
In a year where the Euro suffered a number of setbacks, 2013 saw the joint currency end the year on a high relative to many of its peers. In particular the single currency ended up against the leading reserve currency, the US dollar. Rather than collapsing as was forecast, it actually ended at a three … “What’s Next in Store for the Euro In 2014?”
Canadian Dollar Pulls Back After Gains
Canadian dollar is pulling back a little bit after gaining earlier. Loonie was higher earlier as economic optimism returned to Canada, and a lowered risk of interest rate cuts. However, after seeing some gains, the Canadian dollar is pulling back as risk aversion returns to markets and as traders take some profits. Against the US dollar, the Canadian dollar has been enjoying a bit of a run. Earlier today, the loonie looked … “Canadian Dollar Pulls Back After Gains”