Egypt, Japan discuss economic ties, preparations for TICAD conference    Real Estate Developers urge flexible land pricing, streamlined licensing, and dollar-based transactions    Madinet Masr in talks for three land plots in Riyadh as part of Saudi expansion    Egypt's PM tells Palestinian PM that Rafah crossing is working 24/7 for aid    Egypt's Sisi pledges full state support for telecoms, tech investment    EGP inches down vs. USD at Sunday's trading close    EGX launches 1st phone app    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    After Putin summit, Trump says peace deal is best way to end Ukraine war    Egypt, Namibia explore closer pharmaceutical cooperation    Jordan condemns Israeli PM remarks on 'Greater Israel'    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt prepares to tackle seasonal air pollution in Nile Delta    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Euro Fights Back As ECB Looms; Aussie Tumbles on Jobs Data
Published in Amwal Al Ghad on 07 - 11 - 2013

The euro held firm on Thursday as investors quickly switched gears after upbeat German data dampened the chances of an imminent interest rate cut from the European Central Bank.
Expectations had been growing for the ECB to ease since data last week showed an alarming slowdown in inflation. But a surge in German industry orders in September and steady private sector growth in Europe's largest economy in October, cast doubts on whether the ECB would act so soon.
"The recent data enables them to wait till December and announce the rate cut as part of their broader inflation/growth forecasting exercise," JPMorgan analysts wrote in a note to clients.
As a result, the euro bounced to a high of $1.3548 on Wednesday and stood at $1.3520, flat on the day but pulling away from a near two-month trough of $1.3442 set on Monday.
Against the yen, the common currency climbed as high as 133.72 yen and last stood at 133.30 yen, off a near one-month low of 132.36 plumbed Tuesday.
The ECB meets later on Thursday and is expected to resist pressure to cut interest rates, a Reuters poll of 23 traders showed.
"I don't think they will cut rates but given the fall in inflation, there will be expectations of a rate cut in the future," said Kyosuke Suzuki, director of forex at Societe Generale.
"The biggest event for today would be analyzing the nuance of (ECB President Mario) Draghi's comments. If he says things like there was a discussion on rate cuts, that would cement expectations of more easing," he added.
David Song, currency strategist at DailyFX, noted there seemed to be growing concern among European officials that the persistent strength of the euro was becoming a greater drag on the recovery.
"We may see ECB President Mario Draghi implement his own style of verbal intervention as the outlook for growth and inflation remains subdued," he warned euro bulls.
The livelier euro helped knock the dollar index .DXY to 80.48, off seven-week high of 80.93 hit on Monday.
The dollar could regain its footing if the U.S. July-Sept GDP data, due at 1330 GMT, shows solid growth and firms expectations that the Federal Reserve could soon scale back its stimulus program.
Even more important for the Fed's policy outlook would be Friday's U.S. jobs report for October, which could provide some insight into the economic effects of the government shutdown.
The dollar held its ground against the yen at 98.63, yen -- within reach of a two-week peak of 98.86 set Friday.
The Australian dollar lost was knocked down by a soft Australian jobs report, which showed full-time jobs dropped the most in 16 months.
The Aussie fell 0.6 percent to $0.9472, having almost erased its gains so far this week.
"It looks a bit tough the Aussie to stay above $0.95 considering that the Australian central bank would seem eager to talk down the currency at such a level," said Koichi Takamatsu, head of forex at Nomura Securities.
Source: Reuters


Clic here to read the story from its source.