FX Handover Draghi shoots down euro
A summary of news and snapshot of moves ahead of the US session.
Share this:
- Euro slumped and stocks surged after ECB President Mario Draghi said that “if the crisis has shown anything, it is that we will use all the flexibility within our mandate to fulfil our mandate — and we will do so again to answer any challenges to price stability in the future.”
- Interestingly, safe haven yen has remained the strongest despite the stock market rally
- Draghi’s dovish remarks came as more evidence of investor anxiety emerged: German ZEW Economic Sentiment dropped to -21.1 from -2.1 the month before, easily missing expectations of -5.7.
- Investors will be turning their attention to this week’s main event: the Federal Reserve’s rate decision on Wednesday. Ahead of that, we could see some profit-taking after this morning’s outsized moves.
- Euro slumped and stocks surged after ECB President Mario Draghi said that “if the crisis has shown anything, it is that we will use all the flexibility within our mandate to fulfil our mandate — and we will do so again to answer any challenges to price stability in the future.”
- Interestingly, safe haven yen has remained the strongest despite the stock market rally
- Draghi’s dovish remarks came as more evidence of investor anxiety emerged: German ZEW Economic Sentiment dropped to -21.1 from -2.1 the month before, easily missing expectations of -5.7.
- Investors will be turning their attention to this week’s main event: the Federal Reserve’s rate decision on Wednesday. Ahead of that, we could see some profit-taking after this morning’s outsized moves.
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Australian Dollar Outlook: AUD/USD Holds 70c Ahead of RBA and CPI
AUD/USD faces an expected RBA hike and Australian CPI before attention turns to US PCE, ISM and nonfarm payrolls later in the week.
EUR/USD weekly outlook: Oil, inflation and NFP in focus
After coming under significant pressure in recent weeks, the EUR/USD came off its lows to finish the week on a positive note on Friday, albeit with only a mild rebound. That was not enough to prevent the exchange rate falling for the third consecutive week, as the US dollar and bond yields rallied across the board.
USD/JPY Weekly Outlook: Payrolls loom as US rates remain the dominant driver
Strong US growth and hawkish Fed pricing continue to support USD/JPY, while intervention risk appears to be kicking in at lower levels
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.