Tuesday, January 20, 2015

Currencies: Euro back lower Tuesday noon. – Boursorama

Currencies: Euro back lower Tuesday noon. – Boursorama

(CercleFinance.com) – Two days before a highly anticipated ECB meeting, the trend was again down for the euro / dollar on Tuesday afternoon. At this time, the single European currency yielded 0.19% against the US greenback at 1.1583 dollar, which is still above the level of a dime to that achieved Friday session at 1.1460.

Among the latest economic indicators, the International Monetary Fund (IMF) lowered yesterday its global growth forecast for 2015 to 3.5%, 0.3 points lower than before, and 1.2% the euro area, not 1.4%

In addition, it was reported that prices for industrial production (PPI) in Germany were down 1.7% last month. In addition, investor sentiment and German analysts improved further in January, given the ZEW index rose by 13.5 percentage points to 48.4 under the current month, a level well above the consensus of analysts prepared to 40. Up to the third consecutive month, the index of the outlook for Germany and finds its highest level since February.

But the eyes are turned to the European Central Bank, which will hold a long-awaited Thursday noon press conference.

CMC Market highlights that ‘the anticipation of a program massive monetary easing (‘quantitative easing’) by the ECB, most likely announced at its monetary meeting on Thursday, fueling the risk appetite of investors. ‘

According to analysts private bank Berenberg, probability that the ECB announces QE ‘sovereign’ of at least 700 billion euros over two years Thursday are 60%.

However, grade CMC Market, ‘is whether the institution will reveal enough details on eligible assets, their volumes and the terms of its program.’ In fact, the risk of disappointment for investors and thus ̶ ̶ market correction is not to rule if the ECB did not provide enough information on these technical elements.

In addition, the euro gets closer to parity against the Swiss franc, yielding 0.90% this afternoon at 1.0115 franc the euro, and it yields 0.45% against the sterling to 0.7648.

On the other hand, the euro gets 0.70% against the Japanese yen at 137.48. ?? The Japanese yen slipped on Tuesday as a result of good numbers of Chinese GDP which boosted risk appetite of investors ??, recall the RTFX traders.

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