Filed Under:
Forex pairs in this Article »
FXstreet.com (Barcelona) - Nick Bennenbroek, Head of Currency Strategy at Wells Fargo notes that most currencies are stronger against the U.S. dollar, with encouraging Chinese data and more relatively balanced comments from ECB President Draghi helping to boost market sentiment.

At today's press conference, he notes that Mr. Draghi said that inflation risks were balanced and economic risks were on the downside. He said the decision to hold interest rates steady was unanimous, and also noted the significant improvement in financial market conditions. With nothing in Mr. Draghi's comments that would point to a near-term ECB rate cut, the euro is moving higher, while the Scandinavian currencies and the pound are higher as well. In China, December trade data showed a rise in the trade surplus and a firming in exports, which is helping to support most Asian currencies, as well as the Australian and New Zealand dollars.

He writes, "The most notable exception to today's foreign currency gains is the yen, which has slipped close to recent lows, with media reports suggesting the central bank may adjust its inflation target and ease monetary policy further at its January meeting. Given the favourable news developments from Europe and China we have a bias for further currency gains, at least until (or unless) the next round of U.S budget talks become a more significant for investors and dampens broader market sentiment."
comments powered by Disqus