Forex Flash: This week's events are consistent with dollar and yen weakness - Wells Fargo
FXstreet.com (Córdoba) - The euro and most foreign currencies are higher as markets reversed the initial disappointment following yesterday's ECB announcement, according to Wells Fargo. "With the focus shifting from the lack of any immediate ECB policy action to the fact that a path has been laid out that would allow for a much more forceful ECB move, European markets are taking heart".
"Market sentiment has also been boosted by the first positive U.S. jobs surprise in several months, with July payrolls rising by 163,000", they add.
"Overall, this week's trifecta of key market events has produced more good than bad. The market viewed the Fed announcement as broadly neutral, and the U.S. jobs report and ECB announcement as favorable (the latter after some consideration)", Wells Fargo comments. "While the path for FX markets going forward will undoubtedly remain uneven, we view this week's events as consistent with U.S. dollar and yen weakness, and strength in other G10 and emerging currencies in the coming weeks and months".
"Market sentiment has also been boosted by the first positive U.S. jobs surprise in several months, with July payrolls rising by 163,000", they add.
"Overall, this week's trifecta of key market events has produced more good than bad. The market viewed the Fed announcement as broadly neutral, and the U.S. jobs report and ECB announcement as favorable (the latter after some consideration)", Wells Fargo comments. "While the path for FX markets going forward will undoubtedly remain uneven, we view this week's events as consistent with U.S. dollar and yen weakness, and strength in other G10 and emerging currencies in the coming weeks and months".
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