US Dollar stronger on Payrolls – market looks to Central Bank announcements
The US Dollar was stronger across the board on Friday following stronger than expected payrolls data. Although Januray’s data was weaker than expected it followed an upward revision of both December’s and November’s data.
The greenback made its most ground against the EUR with rumours the ECB will only raise rates one more time circulating the market. This also boosted the GBP/EUR rate seeing it regain the 1.5100 level.
This week is relatively bare of data but more importantly there are a number of central bank rate announcements. All central banks, Reserve Bank of Australia on Wednesday and ECB and Bank of England on Thursday, are all expected to leave rates unchanged. Following last months shock however from the Bank of England anything could happen.
The market will look heavily at the ECB’s accompanying press conference to see if there is any truth to rumours the ECB is nearing an end of its tightening cycle.
Other data this week includes PMI data out of Europe and UK today, EU retail sales on Tuesday, UK industrial and US non-farm productivity on Wednesday, US jobless claims on Thursday and UK trade data and German industrial production on Friday.
This weekend also sees the G7 meeting. The market will be looking to see if European countries comment on the weakening JPY and the G7 release a statement on the matter, but there remains doubts if this will happen given the US Treasury Secretary Henry Paulson stated he was satisfied the JPY’s value was set by the markets.
More likely however is for other G7 members to put additional pressure on China to accelerate steps towards a more flexible currency regime.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
The greenback made its most ground against the EUR with rumours the ECB will only raise rates one more time circulating the market. This also boosted the GBP/EUR rate seeing it regain the 1.5100 level.
This week is relatively bare of data but more importantly there are a number of central bank rate announcements. All central banks, Reserve Bank of Australia on Wednesday and ECB and Bank of England on Thursday, are all expected to leave rates unchanged. Following last months shock however from the Bank of England anything could happen.
The market will look heavily at the ECB’s accompanying press conference to see if there is any truth to rumours the ECB is nearing an end of its tightening cycle.
Other data this week includes PMI data out of Europe and UK today, EU retail sales on Tuesday, UK industrial and US non-farm productivity on Wednesday, US jobless claims on Thursday and UK trade data and German industrial production on Friday.
This weekend also sees the G7 meeting. The market will be looking to see if European countries comment on the weakening JPY and the G7 release a statement on the matter, but there remains doubts if this will happen given the US Treasury Secretary Henry Paulson stated he was satisfied the JPY’s value was set by the markets.
More likely however is for other G7 members to put additional pressure on China to accelerate steps towards a more flexible currency regime.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
posted by Drs Search @ 11:03 AM
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home