Euro, stable after ECB explains monetary policy stand
March 26, 2014 10:07 am
Euro, stable after ECB explains monetary policy stand The euro was firm in early Asian trade on Wednesday, bouncing off lows after comments from European Central Bank officials assisted temper some of their earlier dovish stance.
The single currency touched a three-week low on Tuesday following the ECB governing council member and Bundesbank chief Jens Weidmann said negative interest rates were a choice to make euro stronger and quantitative easing was not out of the context to battle deflation.
But the euro recouped when Weidmann later mentioned the present euro rate does not signal monetary policy move.
Market watchers said statements by ECB President Mario Draghi that the central bank does not perceive a key symptom of deflation in consumer spending traits also rendered the single currency some comfort.
The euro stood slightly changed at $1.3818, bouncing back from the three-week trough of $1.3749 reached on Tuesday. The US dollar index, which measures the dollar versus six major currencies, went up 0.1% at 79.979.
The dollar index sought little pull-off momentum from last week when it climbed to a three-week peak above 80.35 following Federal Reserve Chair Janet Yellen implied the possibility of increasing interest rates early next year.
Also, the greenback couldn’t make much passage following the figures on Tuesday reported US consumer confidence rallied to a six-year high in March. Versus the Japanese yen, the dollar escalated up 0.1% to 102.38, gliding above this month’s low of 101.205 hit when safe haven bids pushed by the Ukraine crisis backed the Japanese currency.
The Australian dollar settled at $0.9162, keeping within distance of a four-month peak of $0.9178 touched on Tuesday. Speculation that China will reveal stimulus to bolster its slowing economy has supported the Aussie.
The material has been provided by InstaForex Company – www.instaforex.com
Euro, stable after ECB explains monetary policy stand The euro was firm in early Asian trade on Wednesday, bouncing off lows after comments from European Central Bank officials assisted temper some of their earlier dovish stance.
The single currency touched a three-week low on Tuesday following the ECB governing council member and Bundesbank chief Jens Weidmann said negative interest rates were a choice to make euro stronger and quantitative easing was not out of the context to battle deflation.
But the euro recouped when Weidmann later mentioned the present euro rate does not signal monetary policy move.
Market watchers said statements by ECB President Mario Draghi that the central bank does not perceive a key symptom of deflation in consumer spending traits also rendered the single currency some comfort.
The euro stood slightly changed at $1.3818, bouncing back from the three-week trough of $1.3749 reached on Tuesday. The US dollar index, which measures the dollar versus six major currencies, went up 0.1% at 79.979.
The dollar index sought little pull-off momentum from last week when it climbed to a three-week peak above 80.35 following Federal Reserve Chair Janet Yellen implied the possibility of increasing interest rates early next year.
Also, the greenback couldn’t make much passage following the figures on Tuesday reported US consumer confidence rallied to a six-year high in March. Versus the Japanese yen, the dollar escalated up 0.1% to 102.38, gliding above this month’s low of 101.205 hit when safe haven bids pushed by the Ukraine crisis backed the Japanese currency.
The Australian dollar settled at $0.9162, keeping within distance of a four-month peak of $0.9178 touched on Tuesday. Speculation that China will reveal stimulus to bolster its slowing economy has supported the Aussie.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: