European Session – Euro recovers from 3-week low after upbeat Eurozone sentiment data
March 28, 2014 2:46 pm
The euro was boosted by upbeat economic sentiment data from the Eurozone which rose in March to its highest level since July 2011. Prior to this data, the euro fell to its lowest level in three-weeks versus the dollar after a surprise fall in Spanish inflation raised concern of deflation risk in the Eurozone.
Gains in the euro are expected to be capped ahead of the European Central Bank policy meeting on Thursday. Speculation is growing that the ECB will further ease policy after several ECB bankers this week have already made remarks implying the central bank is open to taking further action, in the form of QE. Eurozone inflation data (CPI) on Monday will be closely watched as a final clue on potential ECB easing Thursday.
The euro dipped to 1.3704 after the disappoint Spanish CPI but then quickly recovered to 1.3772.
Sterling gained for a fifth day against the dollar, reaching as high as 1.6642. The pound shrugged off disappointing UK current account data which showed the deficit grew more-than-expected in the fourth quarter.
The dollar finally broke out of a range against the yen today and rose to a high of 102.76 after US confidence and spending data.
Personal spending in the US rose in-line with expectations as consumers spent the most in three months in February, while March’s final consumer confidence data advanced, though dipping slightly below forecast. Next week’s nonfarm payrolls will be a key risk for the dollar. A strong number will support the Fed’s move to continue tapering its bond-buying program.
The Australian dollar moved off a four-month high to retreat against the US dollar. Investors booked some profits after the aussie hit a high of 0.9294 in Asia on Friday, bringing down the currency to 0.9242.
The euro was boosted by upbeat economic sentiment data from the Eurozone which rose in March to its highest level since July 2011. Prior to this data, the euro fell to its lowest level in three-weeks versus the dollar after a surprise fall in Spanish inflation raised concern of deflation risk in the Eurozone.
Gains in the euro are expected to be capped ahead of the European Central Bank policy meeting on Thursday. Speculation is growing that the ECB will further ease policy after several ECB bankers this week have already made remarks implying the central bank is open to taking further action, in the form of QE. Eurozone inflation data (CPI) on Monday will be closely watched as a final clue on potential ECB easing Thursday.
The euro dipped to 1.3704 after the disappoint Spanish CPI but then quickly recovered to 1.3772.
Sterling gained for a fifth day against the dollar, reaching as high as 1.6642. The pound shrugged off disappointing UK current account data which showed the deficit grew more-than-expected in the fourth quarter.
The dollar finally broke out of a range against the yen today and rose to a high of 102.76 after US confidence and spending data.
Personal spending in the US rose in-line with expectations as consumers spent the most in three months in February, while March’s final consumer confidence data advanced, though dipping slightly below forecast. Next week’s nonfarm payrolls will be a key risk for the dollar. A strong number will support the Fed’s move to continue tapering its bond-buying program.
The Australian dollar moved off a four-month high to retreat against the US dollar. Investors booked some profits after the aussie hit a high of 0.9294 in Asia on Friday, bringing down the currency to 0.9242.
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