US Existing Home Sales and the House Price Index will be released today; the market hoping to see some stability in those numbers. The Bank of England announced a robust mortgage rescue plan. The Bank of Canada is widely expected to cut rates. (more…)
The Dollar rose across the board on Thursday after US government data showed resilience in the labor market, while a key measure of business sentiment in Germany plunged undermining the Euro. The Euro’s fall followed an early week rally to a record 1.6019 on Tuesday, the highest level since the Euro?s inception in 1999, as investors bet the ECB would raise interest rates to restrain inflation.
The headline Ifo index fell to a much lower-than-expected 102.4 in April, its lowest since January 2006. The Ifo, coupled with a slump in the euro zone manufacturing PMI to levels nearly implying an eco (more…)
Euro rose against the Dollar on Tuesday trading above 1.6000 for the first time since its 1999 inception amid growing expectations that the European Central Bank’s next move may be an interest rate hike.
ECB Governing Council Member Christian Noyer said the bank would do what is needed to bring inflation back to its target of just below 2%, adding that the central bank would move rates if needed. That followed comments from Governing Council member Yves Mersch, who said the ECB has to ask itself each month whether a rate rise is needed to control inflation.
ECB is seen keeping rates at least (more…)
The Euro made its biggest drop against the Dollar in the past three weeks on Wednesday as Euro zone PMI dropped to an almost three-year low in April. Another report showed German manufacturing activity also declined. Demand for the European currency slid further after comments by a member of European Central Bank Governing Council, Christian Noyer, put down speculation of further interest rate increases by the bank.
The ECB is expected to keep its key interest rate on hold at 4%, while the US Federal Reserve is expected to lower its benchmark from 2.25% later this month. The Euro?s record hig (more…)