Euro suffers after Draghi comments
- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- April 6, 2017
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Sterling should have a relatively quiet day with no economic data due today. However tomorrow could be a very key day with Industrial and Manufacturing Production, Trade Balance data along with GDP estimate. Finally, with Mark Carney speaking, will he again hint at a UK rate rise?
We could see movement in the markets, if the data comes in as expected we could see the pound gain.
The euro hit a three-week low this morning after the head of the European Central Bank said he saw no need to deviate from the ECB’s policy path, which includes record-low interest rates and bond-buying until at least the end of the year.
Draghi continued in that vein today, saying that before altering its policy stance, the ECB must have sufficient confidence that inflation would return to target over a medium-term horizon, even when the central bank’s expansionary policy was scaled back.
Draghi made it very clear that he’s not intending any change in the forward guidance, that policy still needs to remain expansionary for a very long time.
The Dollar fell from the three-week high despite hawkish-sounding minutes from the latest U.S. Federal Reserve meeting, which showed most policymakers think the Fed should begin trimming its $4.5 trillion balance sheet later this year and was on track for two more interest rate hikes in 2017.
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