IronFX Daily Commentary by Charalambos Pissouros | 09/12/2016
December 9, 2016 9:06 am
ECB decides smaller asset purchases, but for longer • Maintained all three rates unchanged. • Decided to trim monthly purchases to 60bn from 80bn, starting Apr. and continue until Dec., or beyond if needed. EUR spiked up as this was seen as QE tapering. • However, the Council is willing to increase both size and duration, if inflation outlook becomes less favorable. This is “less for longer” and not tapering. EUR reversed and continued lower. • What’s more, purchases of securities with yields below dep. rate are now permitted. • EUR/USD broke below 1.0700 on the latter point. Could challenge 1.0500 again heading into next week’s FOMC gathering.
Today: • Norway: CPI for November. Expected to slow but to remain well above Norges Bank target. NOK could slide but this is still good news for the Bank. Enhances the case for officials to remain on hold next week and maintain a neutral bias. • UK: trade balance for October; the deficit is expected to have narrowed. • US: Prel. UoM cons. sent. index. Exp. for a rise. Could support the dollar somewhat. • Speakers: ECB Executive Board Member Benoit Coeure.
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ECB decides smaller asset purchases, but for longer
• Maintained all three rates unchanged.
• Decided to trim monthly purchases to 60bn from 80bn, starting Apr. and continue until Dec., or beyond if needed. EUR spiked up as this was seen as QE tapering.
• However, the Council is willing to increase both size and duration, if inflation outlook becomes less favorable. This is “less for longer” and not tapering. EUR reversed and continued lower.
• What’s more, purchases of securities with yields below dep. rate are now permitted.
• EUR/USD broke below 1.0700 on the latter point. Could challenge 1.0500 again heading into next week’s FOMC gathering.
Today:
• Norway: CPI for November. Expected to slow but to remain well above Norges Bank target. NOK could slide but this is still good news for the Bank. Enhances the case for officials to remain on hold next week and maintain a neutral bias.
• UK: trade balance for October; the deficit is expected to have narrowed.
• US: Prel. UoM cons. sent. index. Exp. for a rise. Could support the dollar somewhat.
• Speakers: ECB Executive Board Member Benoit Coeure.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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