The EURUSD started to rally after the ECB announced its stimulus package. While opinions on the success of such measures differ, for now forex traders have decided to trust the monetary policy and pushed this currency pair off of its lows. Inflationary pressures remains absent as evident in the latest data released this morning out of Germany and Spain. Have central banks ran out of ammunition and ideas? Studies have indicated that QE doesn’t have a positive impact on the economy and lead to a reduction in lending. Will the EURUSD rally extend...
All eyes are on the ECB today where President Draghi is expected to announce a massive stimulus plan in its next round of quantitative easing. A cut in Deposit Facility Rate to -0.50% is expected together with more bond buying. The latest Eurozone industrial production figures disappointed and showed a steeper contraction than expected. Inflation remains absent which may give the ECB reasons to worry down the road. With a dovish ECB priced in, can bulls power ahead in the EURCAD following the press conference? Subscribe to the PaxForex Daily...
Today’s CPI data out of the US is expected to confirm the absence of inflationary pressures. The US Fed will meet next week and markets expect a 25 basis point interest rate cut to be delivered. President Trump has stepped up his attacks on the Fed, led by Powell whom he appointed as Fed Chief, and suggested the Fed should consider negative interest rates. He further pointed out that the US should rebalance its debt load which is above 100% of GDP. Can the US Dollar handle a more dovish central bank and how will this impact the USDJPY? Today’s...
USD/CAD has been climbing North since mid-July this summer. However, the Loonie’s pace of decline, especially compared to other commodity currencies such as the Aussie and Kiwi, left many questions about the sustainability of the recent trend. What’s more, the first week of the busy Autumn season showed that things have changed on the fundamental front, and USD/CAD erased half of the recent gains. Currency speculators across the globe wonder if a new downtrend started for the pair, how long will it last and how deep the pair can drop. This...
The Japanese yen fell on Wednesday as the surge in the number of investors in safe assets continued to weaken amid rising risk appetite, while the euro is trading in flat before tomorrow's meeting of the European Central Bank.