Forex today offered a solid performance in the greenback and sterling with flows out of the euro following the dovish rhetoric from the ECB and pessimism which tallied up with the general negative sentiment surrounding global growth in the markets.
The ECB was in the limelight overnight, and while there were no major surprises, the euro was sold-off the lofty heights towards the 1.14 handle to below the 1.13 handle as NY traders pushed the barriers.
“Incoming information has continued to be weaker than expected on account of softer external demand and some country and sector-specific factors,” was the catalyst from the ECB event, while otherwise, the ECB held rates and stuck to the script.
Currency action:
Analysts at Westpac Banking Corporation offered a breakdown of the significant majors: “AUD/USD’s rally on the fall in unemployment failed above 0.7165 as NAB’s mortgage rate hike stoked renewed talk of the RBA lowering the cash rate to help offset the moves by banks in recent months. The Aussie was under 0.7100 in the London morning, extending losses as far as 0.7081. NZD/USD slipped only slightly, to 0.6760, leaving AUD/NZD down 40 pips over the day, around 1.0480.
EUR/USD slipped about 30 pips to 1.1340 on the PMIs, gyrated on the ECB headlines and finally slipped under 1.1300 during NY trade. GBP/USD was net little changed, around 1.3060.”
Key events from US session:
Wall Street mixed on strong earnings, but benchmarks weighed by global growth concerns
There are no key releases for Asia today.
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