By Javier Paz, ForexDatasource.com The following is an extract of the weekly euro and sterling report available for free at the ForexDatasource blog Euro – Current Scenario As we expected, the dovish comments from ECB VP Papademos set the tone for a bad euro week (down 3.0%). The temporary euro boost from the BoE rate [...] [...more]
EURO Report Current Environment The weekend comments from ECB VP Papademos (ECB to “act appropriately” in slowdown) is the second signal in 7 days that ECB members are open to rate cuts in contrast to comments from ECB President Trichet. Opportunistic traders have speculated that the overnight yield advantage of the euro alone could support [...] [...more]
STERLING REPORT Current Environment A substantial amount of year-end volatility was seen for cable on Thursday (350 pips range in 2 hours), but also due in part as a response to Prime Minister Brown dramatic appeal to Britton resilience during troubled times. Despite closing the week lower by 1.1% to the US dollar, we see [...] [...more]
We should avoid reading too much for or against the euro over the events of this past week. Clearly, the strong euro rally appears to be on hold. We believe that dovish comments from an ECB councilmember plus weaker than anticipated data out of the EU and Germany this past week weakened the enthusiasm of euro bulls. Our analysis does project modest euro gains against the dollar for the week. [...more]
