Forex Trading: 17 October 2014
Bond yields in the periphery economies of Eurozone posted a sharp rise yesterday, sending the shared currency 28 points down against the US dollar to $1.2809.
It appears that pressure continues to build and ECB President Mario Draghi may have to be more aggressive in trying to convince Germany that some form of quantitative easing is the only way to stop deflation.
Forex Trading: 16 October 2014
It may be too early to suggest that the US economy is weakening, but yesterday's data was definitely not encouraging, prompting investors to delay their expectations of an interest rate hike.
Consequently, the US dollar was badly hit and the EUR/USD pair rallied by 177 points to $1.2837.
The current corporate results season should help bring more light on the issue.
Forex Trading: 15 October 2014
It did not take much for investors to remember the undeniably divergent state of affairs between the US and Europe, and that a strengthening dollar will be hard to resist.
As a result, the shared currency resumed its plunge yesterday after a decline in German industrial production and economic sentiment, closing 93 points down at $1.2659.
Forex Trading: 14 October 2014
Last week, Fed officials emphasised the risk of contagion for the US from a weaker global economy, inviting caution and delaying the likelihood of an early rate rise.
In doing that, they dampened demand for the dollar, which started the week on the back foot as the EUR/USD pair rebounded by 121 points to $1.2749.
Despite this, whilst many S&P 500 companies
have a large chunk of their revenues coming from abroad, on a medium-to-long-term basis it will be hard for the Fed to justify the current loose monetary policy.
Forex Trading: 13 October 2014
Sorry, there is no forex market commentary for today.
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By Jonathan Sudaria, 17 October 2014