Nobel: The Prize That Honours Conscience, Not Power — and María Corina Machado, Who Changed the Equation    Egypt's PM, Kenya president discuss cooperation on sidelines of COMESA summit    Egypt reconstitutes board of State Information Service    Egypt Writes Calm Anew: How Cairo Engineered the Ceasefire in Gaza    Egypt's Sisi: Gaza ceasefire embodies 'triumph of the will for peace over the logic of war'    URGENT: Egypt's annual core inflation hits 11.3% in Sept – CBE    Sisi invites Trump to Egypt to sign Gaza peace deal if talks succeed    Egypt's acting environment minister heads to Abu Dhabi for IUCN Global Nature Summit    Egypt's oil sector posts $598.3m net FDI inflow in FY2024/25 – CBE    Egyptian Open Amateur Golf Championship 2025 to see record participation    Egypt to meet IMF next week to set date for fifth, sixth reviews – PM    Cairo's Al-Fustat Hills Park nears completion as Middle East's largest green hub – PM    Al-Sisi reviews education reforms, orders new teacher bonus starting November    Egypt's Cabinet approves new universities, church legalisations    Investment Ministry, Future of Egypt Authority discuss strengthening supply chains, strategic commodity procurement    Saint-Gobain Egypt targets doubling exports to Africa to €120m annually    Egypt's UPA launches new version of MedIQ medical procurement system    Egypt urges Netherlands to increase investment, stresses Nile water security    Egypt's Foreign Minister, German counterpart hold political consultations in Cairo    Egypt's Sisi congratulates Khaled El-Enany on landslide UNESCO director-general election win    URGENT: Egypt's Khaled El-Anany unanimously elected UNESCO director-general    Syria releases preliminary results of first post-Assad parliament vote    Karnak's hidden origins: Study reveals Egypt's great temple rose from ancient Nile island    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    Egypt reviews Nile water inflows as minister warns of impact of encroachments on Rosetta Branch    Egypt's Al-Sisi commemorates October War, discusses national security with top brass    Egypt screens 22.9m women in national breast cancer initiative since July 2019    Egypt's ministry of housing hails Arab Contractors for 5 ENR global project awards    Egypt drug regulator, Organon discuss biologics expansion, investment    A Timeless Canvas: Forever Is Now Returns to the Pyramids of Giza    Egypt aims to reclaim global golf standing with new major tournaments: Omar Hisham    Egypt to host men's, juniors' and ladies' open golf championships in October    Egyptian Writers Conference announces theme for 37th session    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    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.