The EUR/USD skyrocketed today to trade at 1.1590 adding 56 points as it seemed to benefit from safe haven moves. EURUSD now blow through decent supply/res
The EUR/USD skyrocketed today to trade at 1.1590 adding 56 points as it seemed to benefit from safe haven moves. EURUSD now blow through decent supply/res at 1.1600 to post 1.1615. EURJPY demand is helping as USDJPY hangs onto the strong demand at 105.50.
The euro climbed against its major rivals in European trading on Tuesday, on the back of a weaker dollar, and as the European Central Bank Executive Board member Benoit Coeure said that the central bank is unlikely to cut the deposit rate into “absurdly low levels.”
The policymaker said that thus far negative rates have not had a major impact on market makers themselves. On the other hand, banks’ profitability has improved due to a mix of lower funding costs, increased lending volumes and lower loan-loss provisions, Coeure said.
“To be sure, this would not necessarily remain true if the deposit facility rate were to be set at significantly lower levels.”
“But this is why I have said elsewhere that we would not take it to absurdly low levels,” he added.
Figures from Eurostat showed that producer prices advanced 0.3% on month, confounding expectations for a 0.1% fall. In February, producer prices had dropped 0.7%.
Producer prices fell 4.2% year-on-year in March, the same pace of decline as seen in February. Prices were expected drop 4.6%.
The currency was also underpinned by yesterday’s data showing improvement in manufacturing activity in Germany and Eurozone.
The final PMI for the Eurozone’s manufacturing sector was revised up to 51.7 from flash score of 51.5, while Germany’s manufacturing PMI climbed to a three-month month of 51.8 in April from 50.8 in the prior month.
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Upcoming Economic Events that you should be monitoring:
Wednesday, May 4, 2016
Cur. | Event | Actual | Forecast | Previous | |||
Japan – Constitution Day | |||||||
AUD | Building Approvals (MoM) (Mar) | -3.0% | 3.1% | ||||
CNY | Caixin Manufacturing PMI (Apr) | 49.9 | 49.7 | ||||
AUD | Interest Rate Decision (May) | 2.00% | 2.00% | ||||
GBP | Manufacturing PMI (Apr) | 51.2 | 51.0 |
Government Bond Auctions
Date Time Country Auction
May 04 11:05 Norway Holds bond auction
May 04 11:30 Germany Eur 4bn Apr 2021 Bobl
May 04 11:30 UK Gbp 2.75bn 1.5% 2021 Gilt
May 04 11:50 France Holds bond auction
May 04 17:20 Sweden Details of bond auction on May 11
May 05 10:30 Spain Holds bond auction
May 05 11:00 Austria Holds bond auction
May 05 11:30 UK Gbp 2.5bn 1.5% 2026 Gilt
May 09 17:20 Italy Announces details of bond auction
May 09 N/A Ireland Details of bond auction on May 12
May 10 11:30 Germany Holds I/L bond auction
May 11 11:03 Sweden Holds bond auction
May 11 11:30 Germany Eur 5bn Jun 2018 Schatz
May 12 11:10 Italy Holds bond auction
May 12 17:20 Sweden Details of I/L auction on May 19
May 12 N/A Ireland Holds bond auction