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4 Dec 2014
EUR showing lack of bounce ahead of ECB non-event – SG
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Research at Societe Generale, notes that today’s ECB meeting is the main event of the day, with the consensus being that no policy moves would be seen today.
Key Quotes
“The main event of the day is the ECB meeting, almost universally expected to see no policy move. Mario Draghi's final press conference of the year does afford an opportunity for him to go off piste however, something he has done before. So we'll see how dovish he sounds and what kind of hints/promises he can make.”
“Away from that, the pattern of trading is familiar - BTP and Bono yiedls at at their lows, showing no sign of losing momentum, and the Euro has yet again failed to bounce ahead of a key event and indeed made a new low for this cycle this morning. It's hard to avoid the impression that the market isn't very short Euros.”
“EUR/USD volatility is trending higher as the bottom of the long-term trading range is tested - which does suggest we could see a ‘surprise' trigger a sharp move to the downside. There is no major data but the Q3 French unemployment figures (+77k to 10.4%) were depressing. We remain short and bearish Euros.”
Key Quotes
“The main event of the day is the ECB meeting, almost universally expected to see no policy move. Mario Draghi's final press conference of the year does afford an opportunity for him to go off piste however, something he has done before. So we'll see how dovish he sounds and what kind of hints/promises he can make.”
“Away from that, the pattern of trading is familiar - BTP and Bono yiedls at at their lows, showing no sign of losing momentum, and the Euro has yet again failed to bounce ahead of a key event and indeed made a new low for this cycle this morning. It's hard to avoid the impression that the market isn't very short Euros.”
“EUR/USD volatility is trending higher as the bottom of the long-term trading range is tested - which does suggest we could see a ‘surprise' trigger a sharp move to the downside. There is no major data but the Q3 French unemployment figures (+77k to 10.4%) were depressing. We remain short and bearish Euros.”