Wij gebruiken een aantal cookies om u de best mogelijke browserervaring te bieden. Door deze website te blijven gebruiken, gaat u akkoord met ons gebruik van cookies. U kunt hier meer lezen over ons cookiebeleid of op de link klikken onderaan iedere pagina van onze website.
EUR/USD below $1.18
Yesterday was an important one in the run up to the next European Central Bank meeting on 22 January. Currency markets have, to an extent, factored in some form of quantitative easing being announced. The most commonly heard expectation is for the ECB to have a €500 billion war chest at its disposal.
The European law courts give their assessment on the legality of the ECB’s actions to stimulate the eurozone to date yesterday. The comments were not the most fulsome ringing endorsements that you are likely to hear, but were nonetheless an approval of what has already taken place, specifically the asset-backed securities purchase scheme and the targeted long-term refinancing operation. This approval clears the way for the ECB to announce a QE policy if it chooses to.
EUR/USD saw a jump back up almost to the $1.1850 level but this was short-lived, and trading this morning is once again below the $1.18 level. The closer we get to this date the more inflammatory comments from finance ministers are likely to be, and increased volatility seems inevitable. The first up to give their opinion will be German Buba president Jens Weidmann, who is due to give a speech tonight on ‘the outlook for the new year’.
This afternoon’s heavy session of US economic data could trigger fresh selling, regardless of the fact that it is already oversold.