As widely expected the ECB held rates steady today at their historic record low of 1.0% while withholding their bond purchase program as is. Expectations were all for that same scenario, but all the attention was to the conference following this decision.
As widely expected the ECB held rates steady today at their historic record low of 1.0% while withholding their bond purchase program as is. Expectations were all for that same scenario, but all the attention was to the conference following this decision.
Most economists and analysts believe that Bank of England will hold the interest rate at its all-time low level of 0.5%. They also expect no change in the £175bn limit on new money pumped into the economy through the quantitative easing program.
Europe’s two leading central banks are expected to keep interest rates unchanged Thursday and damp down any talk that borrowing costs will soon rise in the wake of a surprise rate hike by Australia’s central bank to lift rates.
Dollar Failed to continue the strengthening journey it has stared in the morning, and slumped to a new 14-month low versus major counterparts on Tuesday as investors favored gold, viewed as the most stable currency. Investors are getting more hesitant to hold the dollar with its losses which was only softened by a drop in U.S. stocks.
The currencies market in today’s Asian session has witnessed a slight decline in euro and the royal pound amid an absence of fundamentals. The euro dollar pair fell slightly recording a low of 1.4763 and a high of 1.4793, trading around 1.4780. The pair rallied yesterday from the 1.4720 levels to the 1.4815 levels where it found a strong resistance to start falling back to the 1.4780 levels. The German Zew survey will be released today that may affect the pair’s trades.
Today’s trading activity was subdued as U.S. markets are closed for Columbus Day. Also, markets in Japan are closed for Health-Sports Day, while Canadian markets are shut for Thanksgiving Day. So there were no U.S. economic reports on Monday.
The US currency remains under downward pressure. The negative impact of last week’s disappointing labor market report on the markets was only short-lived. Some commentators were actually of the opinion that the job losses were boosting equity markets and weighing on the dollar, arguing that the weak labor market is enabling the Fed to continue to maintain its expansionary monetary policy.
Crude oil rose above $76 a barrel to a one-year high in New York after an Energy Department report showed an unexpected decline in U.S. gasoline stockpiles as refineries idled units for maintenance. Crude oil for November delivery climbed 42 cents, or 0.6 percent, to $75.60 a barrel at 11:21 a.m. on the New York Mercantile Exchange.
The euro zone is scheduled to release its trade balance indicator. Expectations are for the trade surplus will narrow and this is most likely because of lower exports as a result of the weak demand and higher euro.
The dollar edged higher against the yen and the euro in Asia Wednesday, though the dollar’s weakening trend is still dominant. Dollar’s retreat from 90.00 area on Monday has extended below 88.60 support area and the pair reaches levels at 88.26, with expected next support level at 88.20.
After declining to a 4-month low yesterday hitting 1.5705, the Sterling has rallied during the last 24 hours to reach 1.5990 which is the Asian session high, right below psychological 1.6000 level. The sterling hit 1.6120 high on last Oct 8. The pair rallied ahead of the release of unemployment rate in England that is forecasted to reach 8.0%.
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