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By Associated FX Analysis Team

Kantox currency update: The ECB pushes the euro to fresh highs

Published September 8, 2017

The euro accelerated its uptrend on Thursday hitting fresh 2, ½ year highs against the dollar after ECB president Draghi buoyed investors optimism maintaining the EU growth outlook unchanged and pointing out to October’s meeting as the moment to decide the details of the QE tapering plan.

The dollar has depreciated against its main rivals, weighed by a combination of escalating tensions in Korea, a downbeat reading of jobless claims and the concerns about the consequences of Hurricane Irma, which is expected to hit Florida this weekend.

EUR/USD: 2, ½ year highs at 1.2090. The euro advanced beyond 1.20 after ECB Draghi’s press release, with the dollar vulnerable amid the concerns about the hurricane Irma and a larger than expected increase in the weekly jobless claims. At London market opening times, the EUR/USD is trading at 1.2065.

GBP/USD: fresh one-month highs above 1.3100. The pound has shrugged off the downbeat news regarding the development of the Brexit negotiations and has rallied more than 1.6% against the dollar this week, to reach fresh one-month highs at 1.3150.  At London market opening times, the GBP/USD is trading at 1.3140.

USD/JPY plunges below 108.00. The combination of geopolitical tensions and concerns over the Hurricane Irma have battered the dollar which has accelerated its decline against the yen, breaking below 108.15 to reach its lowest prices since mid-November. At London market opening times, the USD/JPY is trading at 108.95.

 

In the Calendar Today

At 08:30 GMT we will have a plethora of UK economic indicators, with a special interest in the UK Consumer inflation expectations, Manufacturing production and July’s trade balance, which will offer a complete insight on the momentum of UK economy and might increase pound volatility.

08:30 GMT      UK: Manufacturing Production (YoY) (Jul)
Prev: 0.6%       Cons: 1.7%

08:30 GMT      UK: Consumer Inflation Expectations
Prev: 2.8%      

08:30 GMT      UK: Total Trade Balance (Jul)
Prev: £-4.5B     Cons: £-3.250B

 

 


Currency forecasts Q3

 

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