Will they or won’t they? Following the slightly higher than expected January CPI inflation reading and some improvement in economic data such as the Feb PMI manufacturing survey earlier this week expectations for policy easing by the ECB today have diminished. Consequently the EUR has been well supported above 1.3700 even in the face of growing conflict on its doorstep in Ukraine. The risk / reward today is therefore skewed to a bigger EUR (negative) reaction if the ECB does act to ease policy, a possibility that the market may not be giving sufficient credence too. For what it’s worth 3m interest rate futures and 2 year US – Eurozone yield differentials suggest that EUR/USD is overbought.
MarketWatch.com – MarketPulse- Jobless claims fall to lowest level since mid-May
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- Beyond to buy rights to Buy Buy Baby brand and reunite it with Bed Bath & Beyond
- Trump asks Supreme Court to pause TikTok ban
- Amazon says it had best-ever Thanksgiving Holiday week with record sales and number of items sold
- U.S. stock futures and bond yields drop on reports Putin has updated nuclear doctrine
- Charter Communications announces buyout deal for Liberty Broadband at terms above its previous proposal
- General Motors unveils new all-electric Cadillac called the Vistiq with 300-mile range
EUR eyeing ECB decision
March 6, 2014 — Mitul KotechaShare this blog
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