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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • 🇰🇷 Inflation Rate YoY (JUL) Actual: 2.6% Expected: 2.4% Previous: 2.4% https://www.dailyfx.com/economic-calendar#2021-08-02
  • Heads Up:🇰🇷 Inflation Rate YoY (JUL) due at 23:00 GMT (15min) Expected: 2.4% Previous: 2.4% https://www.dailyfx.com/economic-calendar#2021-08-02
  • RT @IMFNews: What is an SDR? Learn more in this short video. https://t.co/86O7k00sWZ
  • AUD/USD Price Outlook: Australian Dollar Awaits RBA Decision Link to Analysis - https://www.dailyfx.com/forex/market_alert/2021/08/02/audusd-price-outlook-australian-dollar-awaits-rba-decision.html $AUD $AUDUSD #Trading https://t.co/R4Lpopvqjp
  • RT @RichDvorakFX: @tradingview $MOVE - reflects implied volatility for US Treasury bonds over the next 30 days. https://t.co/2aDSX8eGEJ
  • USD/MXN trades directionless, oscillating between small gains and losses, near the 20.15 area. Get your $USDMXN market update from @DColmanFX here:https://t.co/FFr3rlXSuX https://t.co/GBCTbvdsN2
  • EUR/GBP looking to retest the 50-day moving average just below 0.8600 $EURGBP https://t.co/LvXrtCrRyz
  • USD/JPY appears to be on track to test the July low (109.06) following the Federal Reserve interest rate decision as longer-dated US Treasury yields come back under pressure. Get your $USDJPY marketing update from @DavidJSong here:https://t.co/VXdZGAfWHh https://t.co/HpKaWK1VC4
  • RBNZ: We will soon begin consulting on ways to tighten mortgage lending standards More below: https://t.co/XVbcd0uVPU $NZD
  • RT @BrendanFaganFx: USD/JPY Under Pressure Following Comments from Fed's Waller $USDJPY #FOMC #FederalReserve #trading Link: https://t.c…
Euro May Fall as ECB President Draghi Cools QE Cutback Bets

Euro May Fall as ECB President Draghi Cools QE Cutback Bets

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • Euro may fall as ECB’s Draghi cools QE cutback speculation
  • US Dollar sinks lower on White House officials’ commentary
  • NZ Dollar erases over half of drop triggered by soft CPI data

All eyes are on the ECB monetary policy announcement in European trading hours. Markets seem primed for an upbeat shift in official rhetoric to set the stage for the speedier unwinding of QE asset purchases to be announced in March.

The hawkish tone on display in minutes from December’s meeting of the ECB Governing Council is a potent argument in Euro bulls’ favor. President Draghi has tended pull the other way however, arguing that even the expiry of the current QE program in September is more of a place-holder than a strict end point.

The single currency may rise if Mr Draghi’s comments at the press conference following the policy announcement reinforce the hawks’ position, though gains may be limited considering the impressive rally already achieved in recent weeks. On the other hand, a dovish stance may trigger a dramatic drop.

The US Dollar sank lower in Asia Pacific trade as comments from White House officials amplified existing selling pressure. Capital has fled the greenback onbets that rosy global growth willsee more central banks follow the Fed’s hawkish lead, making USD alternatives seem relatively cheap (and thereby attractive).

Appropriately enough, the Australian and New Zealand Dollars – the highest-yielding currencies in the G10 FX space – led the way higher against their US counterpart. The latter currency erased more than half of its losses following disappointing CPI data earlier in the day.

See our free guide to learn how you can use economic news in your FX trading strategy!

Asia Session

Euro May Fall as ECB President Draghi Cools QE Cutback Bets

European Session

Euro May Fall as ECB President Draghi Cools QE Cutback Bets

** All times listed in GMT. See the full DailyFX economic calendar here.

--- 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