No Doubts From Draghi
The euro is the top performer of the day after Draghi's comments yesterday helped the euro higher on Monday as he maintained an upbeat, hawkish tone. Attempts from ECB's Praet to cool off the gains worked temporarily. The pound is also performing strongly today, while the franc is the only loser against the USD.
After the ECB decision, reports leaked out that some members of the governing council wanted to downgrade the balance of risks but one of those people certainly wasn't Draghi. In comments in Brussels Monday he said they see a vigorous pickup in underlying inflation and an ongoing, broad-based expansion that vindicates the ECB views.
The comments immediately sent the euro to the highest since June at 1.1815. Yet, news from Draghi's native Italy helped to pull the euro back lower as Italian 10-year yields rose 12 basis points to 2.95% on fears of a larger Italian budget deficit that could destabilize the country's politics or the EU.
The government has until Thursday to unveil a budget package and whether or not it shows a deficit above or below 2% will be a main euro driver. The numbers could be announced at any time and leaks/details could also move the market beforehand. In the bigger picture, the US dollar rebounded Monday and oil rallied 2%. Economic data and news in North American trading remain light.
Wednesday's FOMC rate hike, dot plot and press conference will be the highlight of the week.
توازن بين الخروج السريع والبقاء الصبور
by Ashraf Laidi | Mar 22, 2019 14:23
Yen up as Yields Break Down
by Adam Button | Mar 22, 2019 11:48
تعلم من صفقاتك الناجحة والخاطئة
by Ashraf Laidi | Mar 22, 2019 10:00
Fed Confirms No Hikes
by Adam Button | Mar 21, 2019 10:18
إستغلال الفشل المناسب في مؤشر الداكس
by Ashraf Laidi | Mar 20, 2019 16:24