The volatile trading between the Euro and the U.S dollar, due to speculation of monetary measures enacted by the ECB, morphed into rather muted traing early last week, It started with the Euro being left battered and bruised from Draghis dispersion of dovish remaks, and trading at 1.375 Dollar to the Euro , a level unseen since the beginning of April. The weakening of the Euro was re-ignited on tuesday,as an article on the Wall Street Journal stated that the German Bundesbank would be willing to back the European Central bank in "an array of stimulus measures", Te idea that the Bundesbank, often considered hawkish-oriented in advocated monetary policy could support more dovis policy, helped further weaken the Euro-sending irt to trade 50 pips lower versus the Dollar, at a level of 1.371. Wednesday saw the publishing of nomerous April European Consumer Price Indices.
However, many of those were final estimations of previously announced preliminary figures. Knowing this, investor needed something rather extraordinary in order to shake the markets. Another dosage of the usual muted inflation wouldn"t suffice to send the Euro trading lower versus the Dollar. Evidently,"the usual"was somewhat of understatement to what followed. It started the Germany CPI's final estimation confirming the preliminary figure an a muted but tolerable 1.1% annual increase, continued with the French CPI presenting 0.7% annual inflation at slightly below analyst expectations of 0.9% and even saw Spain confirming a positive 0.4% annual inflation print. With nothing out of the ordinary to shake things up, the Euro gained 10 pips against the Dollar.
No comments:
Post a Comment