IronFX Daily Commentary by Charalambos Pissouros | 30/03/2017
March 30, 2017 9:18 am
Reuters sources: ECB March signals were over-interpreted • EUR tumbled yesterday, after a report that the ECB only wanted to communicated reduced risks in March, not a step towards less stimulus. • Also, the Bank is cautious to change its language in April, as it may be over-interpreted again. • This shifts the near-term outlook of the euro to neutral, as the ECB is likely to maintain a balanced tone, at least ahead of the French election. • Thus, EUR-traders may turn their attention back to headlines and polls regarding the election.
UK vs EU: Let the negotiations begin • The Brexit process has officially begun. This marks the beginning of two years of negotiations. • Within the next 48 hours, the EU will publish draft guidelines on how the negotiations will proceed. • GBP’s forthcoming direction may be decided by incoming headlines regarding the talks. • First item on the agenda: the divorce bill (probably). EU wants the UK to pay roughly EUR 63bn.
Today’s highlights: • Germany: Preliminary CPI for March (12:00 GMT) is expected to have slowed. May prove EUR-negative, but we do not expect such a reaction to be major. • US: Final estimate of Q4 GDP (12:30 GMT) is expected to be revised slightly higher. Nonetheless, this may be seen as outdated and thus, any impact on USD may remain limited. • Speakers: New York Fed President William Dudley, Dallas Fed President Robert Kaplan and ECB Executive Board member Yves Mersch.
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Reuters sources: ECB March signals were over-interpreted
• EUR tumbled yesterday, after a report that the ECB only wanted to communicated reduced risks in March, not a step towards less stimulus.
• Also, the Bank is cautious to change its language in April, as it may be over-interpreted again.
• This shifts the near-term outlook of the euro to neutral, as the ECB is likely to maintain a balanced tone, at least ahead of the French election.
• Thus, EUR-traders may turn their attention back to headlines and polls regarding the election.
UK vs EU: Let the negotiations begin
• The Brexit process has officially begun. This marks the beginning of two years of negotiations.
• Within the next 48 hours, the EU will publish draft guidelines on how the negotiations will proceed.
• GBP’s forthcoming direction may be decided by incoming headlines regarding the talks.
• First item on the agenda: the divorce bill (probably). EU wants the UK to pay roughly EUR 63bn.
Today’s highlights:
• Germany: Preliminary CPI for March (12:00 GMT) is expected to have slowed. May prove EUR-negative, but we do not expect such a reaction to be major.
• US: Final estimate of Q4 GDP (12:30 GMT) is expected to be revised slightly higher. Nonetheless, this may be seen as outdated and thus, any impact on USD may remain limited.
• Speakers: New York Fed President William Dudley, Dallas Fed President Robert Kaplan and ECB Executive Board member Yves Mersch.
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/wSEbPNÂ
• 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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