The next few days brings the potential for heightened volatility across FX markets, as tomorrow’s Fed meeting leads into Thursday morning’s ECB rate decision.
Far more potent FX-specific catalysts like US CPI, UK CPI, and the FOMC and ECB rate decisions will come across the wires in the next 48-hours.
GBP fell through 1.34 after factory output posted its largest monthly fall since October 2012, while the Euro has pushed higher amid reduced Italy fears and ahead of ECB meeting.
Next week, we have the ECB meeting on Thursday following the FOMC on Wednesday; euro positioned to pullback and try and hold support for another leg higher.
Capital and FX markets held remarkably stable given the fundamental pressure filling the horizon. With trade wars steadily gaining traction, key rate decisions (Fed, ECB, BoJ) and a range of high profile event risk the […]
Against the background that Draghi recapped the April monetary policy meeting by saying that monetary policy was not discussed per se at all, the very recent signals from the ECB are somewhat surprising. First, there […]
It was a counter trend kind of week in FX-land as the US Dollar pulled back while EUR/USD saw a short-squeeze. But next week brings pivotal rate decisions from both the Fed and the ECB, […]
The single currency continues to recover as we approach the one-two combo of next week’s FOMC and ECB rate decisions, set for Wednesday and Thursday. Will prior themes of USD weakness and Euro come back […]
Turkish Lira outperforms after the Turkish Central Bank surprises markets with a 125bps rate hike, while EUR buying continues ahead of the ECB monetary policy decision.
The Euro has been strengthening on hints that the ECB will discuss ending its QE program when it meets next week. However, that may already be priced in to the markets.