Euro Recovers After ECB QE Tapering Report
13 Luglio 2017 - 12:49PM
RTTF2
The euro trimmed its early losses against its most major
counterparts in the European session on Thursday, following a media
report that the European Central Bank may hint at its September
meeting that it plans to gradually wind down the QE next year.
The ECB President Mario Draghi is set to take the opportunity to
signal a policy shift at the Federal Reserve's Jackson Hole
conference in August, the Wall Street Journal reported.
Draghi is likely to signal at its September 7 policy meeting
that the QE program would be gradually wound down next year, the
report said citing ECB officials.
The most likely scenario is to trim QE by EUR 10 billion a
month, starting from January 2018, it showed.
The euro dropped early in the session, after the Governing
Council member Ilmars Rimsevics indicated that the ECB would stick
on with its QE program for few more years.
As the ECB is unlikely to meet the medium-term inflation target
of 2 percent, it is possible for it to continue the QE program for
at least couple of years, he told.
Latest figures from Destatis showed that Germany's consumer
price inflation increased as initially estimated in June.
The consumer price index rose at a slightly faster pace of 1.6
percent year-over-year in June, following a 1.5 percent climb in
May. That was in line with the flash data published on June 26.
The euro showed mixed performance in the Asian session. While
the euro held steady against the pound and the franc, it rose
against the greenback and the yen.
The euro bounced off to 1.1419 against the greenback, from an
early weekly low of 1.1371.The euro is likely to locate resistance
around the 1.16 region.
Reversing from an early weekly low of 128.49 against the yen,
the euro recovered to 129.42. Next key resistance for the euro may
be found around the 131.00 mark.
The euro edged up to 1.1027 against the Swiss franc, off its
early 3-day low of 1.0984. If the euro extends rise, 1.12 is
possibly seen as its next resistance level.
The euro staged a mild recovery against the pound with the pair
trading at 0.8819. This may be compared to a 6-day low of 0.8802
hit at 7:00 am ET.
In its quarterly economic survey, the British Chambers of
Commerce said that the U.K. economy grew at a subdued rate in the
second quarter of 2017
The balance of firms reporting increasing domestic sales in the
manufacturing sector held steady at +20, while the balance
reporting export sales rose marginally to +27 from +26.
The euro recovered to 1.4580 against the loonie, 1.5596 against
the kiwi and 1.4784 against the aussie, from its early low of
1.4483, more than 2-week lows of 1.5455 and 1.4707, respectively.
The next possible resistance levels for the euro are seen around
against the loonie, against the kiwi and against the aussie.
Looking ahead, at 11:30 am ET, Federal Reserve Bank of Chicago
President Charles Evans is expected to speak about the economy and
monetary policy at the Annual Rocky Mountain Economic Summit in
Idaho, U.S.
At 1:00 pm ET, Federal Reserve Governor Lael Brainard is
scheduled to speak about monetary policy at the National Bureau of
Economic Research, in Massachusetts.
At 2:00 pm ET, U.S. Federal monthly budget statement is slated
to publish.
Grafico Cross Euro vs Yen (FX:EURJPY)
Da Mar 2024 a Apr 2024
Grafico Cross Euro vs Yen (FX:EURJPY)
Da Apr 2023 a Apr 2024