Forex Flash: Dollar down as Euro hits six week high – Wells Fargo
FXstreet.com (Barcelona) - The US Dollar is broadly lower this morning as yesterday's constructive market mood continues to prevail with the Euro touching a new six week high writes Jason Ball, FX analyst at Wells Fargo.
European finance ministers expressed optimism on Greece's newly launched debt buyback program which initially saw better than expected pricing from the Greek government. Overall, Ball notes that the news has been generally supportive of Spanish and Italian bond yields while European equity markets are mixed.
Balls notes that central bank policy announcements out of Australia and Canada were also in focus and as expected the RBA cut its benchmark rate 25 bps to 3.00% but the market took its cue from the subsequent policy statement which suggested that rates may now be on hold for a while, sparking a rally in AUD.
Amidst a recent softening of Canadian economic conditions, the Bank of Canada stood pat, keeping its policy rate at 1%, also as expected. In its statement, the BoC appeared to be looking through the current softness, indicating that growth is expected to pick up again in 2013. The Canadian dollar was higher versus the greenback immediately following the announcement.
European finance ministers expressed optimism on Greece's newly launched debt buyback program which initially saw better than expected pricing from the Greek government. Overall, Ball notes that the news has been generally supportive of Spanish and Italian bond yields while European equity markets are mixed.
Balls notes that central bank policy announcements out of Australia and Canada were also in focus and as expected the RBA cut its benchmark rate 25 bps to 3.00% but the market took its cue from the subsequent policy statement which suggested that rates may now be on hold for a while, sparking a rally in AUD.
Amidst a recent softening of Canadian economic conditions, the Bank of Canada stood pat, keeping its policy rate at 1%, also as expected. In its statement, the BoC appeared to be looking through the current softness, indicating that growth is expected to pick up again in 2013. The Canadian dollar was higher versus the greenback immediately following the announcement.
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