The market was reluctant to push the euro above $1.2150 and we've seen it slowly come down from there during European trading. |
The more hawkish rhetoric we've had from the ECB and talk of the next move in interest rates being up is protecting the euro a little. The problem the market has is that it's tougher talk, but action is still some way away. |
The rise in output prices ... will not ruffle the doves unduly when the Monetary Policy Committee meets next month to decide on interest rates. |
The rise in output prices ... will not ruffle the doves unduly when the Monetary Policy Committee meets next month to decide on interest rates. |
The rise in output prices ... will not ruffle the doves unduly when the MPC meets next month to decide on interest rates. |
The rise in output prices ... will not ruffle the doves unduly when the MPC meets next month to decide on interest rates. |
The sense over the last few days seems to be that the dollar is reasonably well supported. We have had reasonably good numbers out of U.S. for a considerable period and the dollar did not rally, so maybe people are having a bit of a rethink. |
The yen also got a boost from the China story because the yen is a yuan proxy. |
There are concerns that the revival in euro zone business confidence has been driven by the external sector, which could be undermined if the euro keeps on rising. |
There is a big hangover from soft U.S. data we had yesterday which worked in the direction of dollar weakness. |
There is a reluctance to push the euro/dollar higher because of riots in France and pressure from euro zone finance ministers not to raise rates. |
There's a justifiable degree of cynicism about the new coalition. People are unsure about what it will deliver in terms of economic reforms. |
We are expecting a reasonably soft number, which could undo some small dollar gains we have seen against European currencies. |
We will probably see inflation holding around 2.4 percent and it is still benign. Things are generally improving in the euro zone and I don't think this story will be derailed by the PMI. |