Results for 'ECB'
73 articles with this tag name
Updated May 13, 2013 12:20:00 PM
At least in the short term, the yield spread between German Bunds and US Treasury yields seems to support a weaker EURUSD. But beware; a key support level is approaching. The spread on the 10-year yield is currently -0.56%, not far from - 0.6% is the lowest level since June 2010. Whenever the spread has fallen to these levels it has coincided with a low in EURUSD. • The last time the spread was
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Updated May 8, 2013 9:00:00 AM
The EUR has staged an impressive recovery in the last few days boosted by record highs in US stock markets and some impressive German data. German factory orders and industrial production both smashed expectations, which suggest that the largest country in the currency bloc had a strong end to Q1. EURUSD sliced through resistance at 1.3130 earlier, and is testing 1.3165-70 recent highs. If we get above here then 1.3210-40 resistance is back on
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Updated May 8, 2013 5:00:00 AM
The stability in the euro has been impressive and it has been moving higher with global stock markets. It seems the global wall of central bank liquidity has helped to prop up the single currency even against the best efforts of the ECB, who have gone to extremes to try and limit EUR strength in recent months. But has EURGBP gone too far? It is at a critical juncture and is testing key resistance
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Updated May 7, 2013 9:00:00 AM
The RBA is the latest central bank to cut interest rates following the ECB’s decision last week. The Australian central bank cut rates by 25 basis points to 2.75% - an all time low – earlier attributing the cut to the inflation rate likely to be “a little lower than expected” in the coming months. Weaker inflation pressures gave the RBA scope to cut rates, however the strong exchange rate may have also played a
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Updated May 3, 2013 1:23:05 AM
The Aussie and Kiwi retraced some of Wednesday’s losses against the dollar, while EURUSD and USDJPY remained flat throughout the session. USDJPY rocketed higher overnight on the back of better than expected data out of the US and an attempt from the ECB to stimulate growth in Europe. The ECB elected to cut its main interest rate and indicated it’s keeping an open mind about imposing negative deposit rates. The former was largely expected, but
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Updated May 2, 2013 3:20:00 PM
With central bank meetings out of the way for now, markets will turn their attention to tomorrow’s BLS employment report and though expectations are for an improvement from March’s anemic job growth, a lack of significant progress is likely to mean that the Fed will keep asset purchases steady. The “increase or reduce” language in yesterday’s statement implies that markets are likely to be more sensitive to economic data surprises. As such, markets will be
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Updated May 2, 2013 12:00:00 PM
It’s not often that the Pope gets mentioned in an ECB press conference, but that is what happened today. At his press conference Draghi was asked to comment on a tweet from Pope Francis about the tragedy of rising unemployment in the Eurozone. After a brief pause, Draghi said that the situation is frustrating for the ECB as well as the Vatican as its efforts fail to generate enough growth to get businesses hiring once
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Updated May 2, 2013 10:00:00 AM
We chose EURJPY as our one to watch during the ECB press conference. The title, from a Blondie song of the same name, proved to be right on the button. Initially EURJPY surged to 129.90, the highest level since April 24th , before falling sharply. Firstly, the ECB rate cut was greeted with a wave of EUR buying, added to this the head of the Bank of Japan ensured that he got maximum bang for
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Updated May 2, 2013 5:30:00 AM
AUDUSD has dropped sharply in the last 24 hours, and followed the path of weaker stock markets. Global growth fears are the key driver including the Fed’s acknowledgement of weak US data along with weak Chinese data earlier this week. However, this cross is finding some support at 1.0220, which is exactly where it found support back on 23rd April after another sell off. This is significant support level that the market should respect
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Updated May 2, 2013 4:00:00 AM
Brent crude oil was one of the casualties of the FOMC meeting last night, as the Fed sounded concerned about the recent deterioration in US economic data. Added to that Europe is weak and China also had some disappointing numbers earlier this week. A global economic slump this summer isn’t going to help oil demand; however, we need to balance that with the assumption that Opec desires a $100 per barrel floor in the oil
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