News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Euro Eyes ECB Bond-Buying Results, US Dollar Drops to Start the Week

Euro Eyes ECB Bond-Buying Results, US Dollar Drops to Start the Week

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • US Dollar Drops to Start the Week as Asia Reacts to Disappointing Payrolls
  • Euro Looks to ECB Covered Bond Purchase Results for Direction Guidance
  • BOE Governor Carney May Stoke Japanese Yen and British Pound Volatility

The US Dollar underperformed to start the week, tracking Treasury bond yields as Asian markets took their turn to react to last week’s disappointing Employment figures. The report showed a 214,000 payrolls increase in October, disappointing expectations calling for a 235,000 gain and hinting the Federal Reserve may move slower to issue its first post-QE3 interest rate hike.

Looking ahead, the European Central Bank is in spotlight as it reports the size of last week’s covered bond purchases. The first week of the program saw a mere €1.7 billion in uptake, which the markets seemed to judge as far too small to meaningfully counter deflationary pressure in the currency. With that in mind, a similar outcome this time around would suggest the ECB may be aiming to make a habit of this tepid pace, which might boost the Euro. Alternatively, a noticeably larger effort stands to weigh on the single currency.

Also of note, Bank of England Governor Mark Carney is due to speak at a press briefing in Basel ahead of the Brisbane G20 summit. Commentary touching on global growth trends at large may carry implications for risk appetite and sentiment-sensitive currencies including the Japanese Yen (with dour rhetoric set to boost the safe-haven unit, and vice versa). Signs of increased worry about spillover effects from a hobbled Eurozone economy may likewise punish the British Pound amid ebbing BOE rate hike bets.

New to FX? START HERE!

Asia Session

GMT

CCY

EVENT

ACT

EXP

PREV

23:50

JPY

Official Reserve Assets ($) (OCT)

1265.9B

-

1264.4B

0:30

AUD

Home Loans (SEP)

-0.7%

-0.4%

-0.9%

0:30

AUD

Investment Lending (SEP)

3.7%

-

0.7%

0:30

AUD

Value of Loans (MoM) (SEP)

1.4%

-

-1.9%

1:30

CNY

Producer Price Index (YoY) (OCT)

-2.2%

-2.0%

-1.8%

1:30

CNY

Consumer Price Index (YoY) (OCT)

1.6%

1.6%

1.6%

European Session

GMT

CCY

EVENT

EXP

PREV

IMPACT

6:45

GBP

FSB/BOE Governor Carney Speaks in Basel

-

-

Medium

9:30

GBP

Lloyds Employment Confidence

-

10

Low

9:30

EUR

Eurozone Sentix Investor Confidence

-13.8

-13.7

Low

14:30

EUR

ECB Announces Covered Bond Purchases

-

-

Medium

Critical Levels

CCY

Supp 3

Supp 2

Supp 1

Pivot Point

Res 1

Res 2

Res 3

EURUSD

1.2204

1.2316

1.2385

1.2428

1.2497

1.254

1.2652

GBPUSD

1.5657

1.5753

1.5811

1.5849

1.5907

1.5945

1.6041

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES