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Euro rebound after talks of ECB interest rates hike

News Date: 13/3/2017 02:26:49
Update Date: 13/3/2017 02:27:17
 

Euro edged higher on Asian trading, kept friday's gains, backed by talks of some European Central Bank policy makers about the possibility of raising interest rates before the completion of the asset purchase program.

At 04:30 GMT, the euro rose 0.1% against dollar to record high at 1.0690,the recorded high on Friday was at 1.0699, which is the highest in almost a month,

Some members of the Governing Council in the European Central Bank discussed the possibility of raising interest rates at  last week's meeting , but those talks on this issue were brief and did not receive broad support, said two sources familiar with the discussion.

Note that euro gains are limited to these statements, as investors awaited interest rate decision of the Federal Reserve next two days with growing expectations for higher interest rates.

We are waiting today ECB president Mario Draghi speaks, who is scheduled to deliver opening speech at the a joint conference between the European Central Bank and the Massachusetts Institute of Technology in Frankfurt.

Any hint from Draghi supports the leaked discussions from Governing Council for the possibility of raising interest rates, will support and strength the recovery of euro in the short term.

 

Dollar weak,after the failure of U.S. Jobs report to meet elevated expectations

The dollar index settled in the early trades, near Friday's lows ,affected by positive talks on euro, after the negative response of the markets on the US jobs report, which beaten estimates.

The US dollar index fell Friday after the US jobs report, which showed a rise in wages less than expected,In addition the report showed creation of  235,000 jobs for the US economy on February, beating expectations of 190,000, and the numbers came close to the previous month at 225,000 jobs.

We can not denying the fact that the report is very strong, but failed to push the dollar higher, the fact that markets have fully priced these numbers, because the expectations were sky-high to have a very strong strong report.

The US dollar index fell (USDIX) 0.2% at 101.90.

It is difficult Today to find a clear trend, so the expectations will impose narrow ranges control over the markets, as we also are waiting Fed decision next Wednesday.

The dollar fell against the Japanese yen 0.6% to record 114.75 levels, relinquishing of the opening price, which is at the same time the highest from December at 115.50.

British pound  trades against the US dollar within sideway for the third consecutive day, after negative data recently released by the British economy, which ignited fears about the future of economic growth, amid fears of the consequences from exit the European Union.

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