European currencies prepare for higher-pace volatility

Posted 12 March, 2018

The start of the week has been dull in the currency markets. The main currency pairs are consolidating sideways given slack trading and lack of strong driver. Still, the currencies, in particular, European ones, should get ready for the coming events over the next few days which will definitely stir markets up.

Euro and sterling are reportedly getting firmer after sluggish dynamics last Friday. Facing a lack of news traders continue to estimate the Friday report from the USA. According to the market expert, the data indicated soaring employment rate, but also slow upturn in wages. The situation can be somewhat cleared up in the next few days after the release of the inflation and retail sale reports to be made on Tuesday and Wednesday respectively, a market analyst believes. The coming data will shine a light to the perspectives of further tightening of Powell-run Federal Reserve.

However, European currencies are said to have their own reasons for a trade rebound. For instance, UK Finance Minister will make the spring statement, which may give more details concerning the state funding status with the Brexit costs. Moreover, the UK will announce country's economic perspective analysis. If insiders detect high financial risks and fears of slower economic growth in the report, the sterling can face massive selloffs.

Meanwhile, the European currency awaits the meeting of the European Central Bank to take place this Wednesday. For reference, ECB's Head was not very optimistic during the last meeting a week ago and made careful statements unwilling to spur EUR bulls. As a result, it will not be a surprise if he does not make any optimistic messages that may boost expectations of early stimulus shutdown in the euro-area, as a market analyst reports. 

Previous forecast

13 March, 2018 11:50

← US dollar waits in the woods ahead of US inflation report

Trading was mainly sluggish in currency markets on Monday, though US dollar lost some positions vs the rivals on weak wage growth data in the February labor report. This morning the American currency attempted to turn the table, but the market shows quite moderate development ahead of the release of the US inflation report later in this day...

US dollar waits in the woods ahead of US inflation report

Next forecast

12 March, 2018 13:26

Euro may face challenges in EUR-USD →

EUR-USD pair lost some positions over the past week given a negative response to the meeting of the European Central Bank. It was said that the regulator removed from its covering statement the phrase about its readiness to expand asset buying when needed. This is considered to be an essential progress in the monetary regulators' discussions and an upward signal for the euro.

Euro may face challenges in EUR-USD
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