The euro remains stable on Thursday, prior to European Central Bank (ECB)’s policy review. The Australian dollar escalated as strong data reinforce its dovish stance that the Reserve Bank of Australia (RBA) has already reduced interest rates.
Most key currencies firmed to fairly slender ranges before key event risks such as the ECB’s policy decision today and US employment data on Friday.
The euro was steady at $1.3528, gliding above a two-month low close to $1.3477 that had been fixed on Monday.
Speculation that the ECB may be strained to ease monetary policy further to fend off the danger of deflation has depressed the euro recently, although most money market traders saw no looming action from the EBC and believed the central bank would wait.
Data released last week repoted the annual inflation in the currency wing went down 0.7% in January, way below than the ECB’s target of below 2%.
“Our view is that if they don’t cut today, they may trim rates in March. We’re forecasting a small cut in March. We wouldn’t rule out something today although it seems unlikely,” said Credit Agricole Head of Global Foreign Exchange Strategy Mitul Kotecha.
The euro could witness a knee-jerk leap if the ECB would resist from monetary change on Thursday, but would probably quickly go into selling if there is such a rally, Kotecha added.
Over yen, the euro was slightly changed at ¥137.27, staying above an 11-week low of ¥136.25 on Tuesday.
The dollar was also steady versus yen that is almost ¥101.47, resting above Tuesday’s 11-week trough almost ¥100.76 yen.
The dollar went down about 0.5% against the yen, with the Japanese currency gone hefting from safe haven demand in the light of a recent sell-off in emerging market equities and currencies.
Combined US data on Wednesday lend little reinforcement for the greenback. Growth in the service sector took the step in January while private employers incurred 175,000 jobs in January, the smallest increase since August.
But many analysts are positive that the closely monitored US non-farm payrolls due on Friday will report January hiring bounced back following a weak December data, which saw a payroll increment of just 74,000.
The Australian dollar surpassed, following a strong data added to the view the RBA was done trimming interest rates.
The latest spring came after a better retail sales in December, which added to attestation that consumer spending was aiding in reviving the economy from a cooling mining snap.
Other data also displayed the country boasted its largest trade surplus in two years in December, as exports to China increased to A$94 billion overall in 2013. China is Australia’s leading export market.
The Australian dollar went up 0.6% to $0.8965. The Aussie dollar climbed 2.5% so far this week, which jumped after the RBA on Tuesday plunged its easing propensity and toned down its aim of taking the currency lower.
The material has been provided by InstaForex Company – www.instaforex.com
The euro remains stable on Thursday, prior to European Central Bank (ECB)’s policy review. The Australian dollar escalated as strong data reinforce its dovish stance that the Reserve Bank of Australia (RBA) has already reduced interest rates.
Most key currencies firmed to fairly slender ranges before key event risks such as the ECB’s policy decision today and US employment data on Friday.
The euro was steady at $1.3528, gliding above a two-month low close to $1.3477 that had been fixed on Monday.
Speculation that the ECB may be strained to ease monetary policy further to fend off the danger of deflation has depressed the euro recently, although most money market traders saw no looming action from the EBC and believed the central bank would wait.
Data released last week repoted the annual inflation in the currency wing went down 0.7% in January, way below than the ECB’s target of below 2%.
“Our view is that if they don’t cut today, they may trim rates in March. We’re forecasting a small cut in March. We wouldn’t rule out something today although it seems unlikely,” said Credit Agricole Head of Global Foreign Exchange Strategy Mitul Kotecha.
The euro could witness a knee-jerk leap if the ECB would resist from monetary change on Thursday, but would probably quickly go into selling if there is such a rally, Kotecha added.
Over yen, the euro was slightly changed at ¥137.27, staying above an 11-week low of ¥136.25 on Tuesday.
The dollar was also steady versus yen that is almost ¥101.47, resting above Tuesday’s 11-week trough almost ¥100.76 yen.
The dollar went down about 0.5% against the yen, with the Japanese currency gone hefting from safe haven demand in the light of a recent sell-off in emerging market equities and currencies.
Combined US data on Wednesday lend little reinforcement for the greenback. Growth in the service sector took the step in January while private employers incurred 175,000 jobs in January, the smallest increase since August.
But many analysts are positive that the closely monitored US non-farm payrolls due on Friday will report January hiring bounced back following a weak December data, which saw a payroll increment of just 74,000.
The Australian dollar surpassed, following a strong data added to the view the RBA was done trimming interest rates.
The latest spring came after a better retail sales in December, which added to attestation that consumer spending was aiding in reviving the economy from a cooling mining snap.
Other data also displayed the country boasted its largest trade surplus in two years in December, as exports to China increased to A$94 billion overall in 2013. China is Australia’s leading export market.
The Australian dollar went up 0.6% to $0.8965. The Aussie dollar climbed 2.5% so far this week, which jumped after the RBA on Tuesday plunged its easing propensity and toned down its aim of taking the currency lower.
The material has been provided by InstaForex Company – www.instaforex.com
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