The Euro Is On The Defensive Mode Ahead Of ECB Meeting In Worries About Growth
FXBonusOffer logo
Ad left
Ad right

The Euro is on the defensive mode ahead of ECB meeting in worries about growth

(0) Comments
Rated: /5

The euro was on the trunk foot on Monday before a European Central Bank meeting later this week of which policymakers are anticipated to provide new stimulus to bolster a flagging regional economy.

Heightened expectations of having an ECB easing come as other global central banks proceed to loosen the monetary spigot using the People's Bank of China on Friday taking steps to improve lending.

Increasing the demands central bank easing is signed the global economy is fighting China's exports unexpectedly falling in August, data released on Sunday showed.

The dollar was confined to a narrow range versus the yen as traders weighed the chance of U.S. interest cuts against their demand for safe-haven assets.

Among Asian currencies, the yuan got off to some subdued start following the soft trade data.

"The Chinese numbers play towards the view that when we don't see progress in U.S.-China trade talks, then further easing will undoubtedly be necessary, including tolerance of the weaker yuan," said Ray Attrill, head of the forex strategy at National Australia Bank in Sydney.

"The ECB may be the big game around globally this week, and the marketplace is convenient using the Federal Reserve cutting rates. Therefore i think the marketplace is most likely risk-neutral."

Sterling edged lower as political uncertainty about how exactly the united kingdom would complete its divorce with Europe by an Oct. 31 deadline dented appetite for that pound.

Traders will probably take their cues from your ECB as major central banks fall into line support measures for any weakening global economy.

The euro was little changed at $1.10235 (EUR=EBS) early in Asian trading after falling 0.1% on Friday.

Sterling traded at $1.2288 after falling 0.4% on Friday.

The dollar index (=USD) against a basket of six major currencies rose 0.03% to 98.447.


Post Rating:

5 Stars
4 Stars
3 Stars
2 Stars
1 Stars

Write Your Comment