1. Hello Guest Click here to check FX Binary Point Financial Directory

Euro confined to a half cent range after in line Eurozone data - BBH

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Delhi) – Research Team at BBH, notes that the Eurozone reported November current account figures and the 26.4 bln surplus was in line with the 6- and 12-month averages.

    Key Quotes

    “The December advance CPI was confirmed at 0.2% year-over-year (that same as the UK's), while the core rate is steady at 0.9%. The new news was that the ZEW survey of investor confidence fell to 22.7 from 33.9. It is the lowest since November 2014. The DAX was down over 10% this year coming into today's session. That alone, leaving aside the refugee tension and heightened terrorism fears, would have weighed on sentiment.

    Still, when everything is said and done, the euro has been confined to a half cent range (~$1.0860-1.0905). It shows no propensity to break out of the $1.08-1.10 trading range that has largely confined the action since the early December ECB meeting.

    Given the appreciation of the euro on trade-weighted terms, the drop in oil prices and the increase in real rates, the risk is that Draghi's comment at the press conference on Thursday will spur euro selling. He will likely argue that door is open for additional measures should they be needed (and we think they will nearer midyear).”
    For more information, read our latest forex news.

Share This Page