Following Mario Draghi’s calculated speech, which saw a desirable weakening in the Euro, Angus Campbell – Senior market commentator for FxPro – joined Zak Mir in the Tip TV studio to discuss what to expect over the next few months.
https://www.youtube.com/watch?v=AsWPyN_VydI
Euro highly correlated to risk assets
With the Australian dollar being tied in to the Chinese economy, investors have been using EURUSD to unwind exposure to risk from commodities and stocks. Campbell compared the chart to an inverted S&P futures chart, which shows very high levels of correlation, highlighting that the euro may be closer to a safe haven than previously expected in this current period of economic uncertainty.
The gauntlet has been thrown down
With Janet Yellen receiving a lot of criticism over the Federal Reserve’s recent lack of confidence over its plan to affect US interest rates, Mario Draghi has drawn praise for being virtually infallible in his moves as president of the ECB. Angus Campbell believes that this has sent a clear message to the other central banks: he is calling the shots.
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