07/ 06/ 2018

Chief Economist Peter Praet states that ECB show signs of Unwinding Quantitative Easing Program by End of the Year

Euro strengthened to hit two weeks high against the US Dollar on Wednesday after officials said the European Central Bank could wind down its stimulus program by the End of the Year, as inflation has risen to its target.Having revived growth with an unprecedented 2.55 Trillion Euro bond purchase program which they will be shortly debating next week at ECB whether to unwind bond purchases gradually. This was a statement released by Peter Praet ECB Chief Economist.

Sterling is likely to gain, and by the time Britain leaves the European Union next March it is expected to have recouped much of the losses since the June 2016. The currency is down around 10 percent since Britons voted to leave the EU, trading at $1.34 on Wednesday, but a lot of those losses will be wiped out on expectations for rate hikes and a good divorce deal with the EU

Better-than-expected business surveys this month have stoked expectations the Bank will raise interest rates by 25 basis points to 0.75 percent in August, as was predicted in a May 23 poll.

06/ 06/ 2018

Italian Prime Minister Conte's Promise for a Radical Change and to stay on EU boosted the Euro further

Euro strengthened against the US Dollar on Tuesday as Euro was boosted after Italian Prime Minister Giuseppe Conte said the government had never considered leaving the Euro Zone. Conte told parliament  that his New Government had no plans to leave the Euro Zone.  Italy’s ruling coalition’s original choice as Economy Minister. Euro-Skeptic Economist Paolo Savona was turned down by the head of state because of his views on the Euro. He was replaced by a more reassuring figure for Financial Markets.

The Euro also benefits on speculation that the ECB could conclude its next policy meeting this month with a public announcement on when its Quantitative Easing program would end.

Besides, the US economic data was positive such as ISM Figures and Markit Services & Composite. On the other hand, sterling rose against the dollar yesterday after survey showed companies in Britain’s Dominant Services sector grew more quickly than expected in May after a winter slump in Easy 2018.

05/ 06/ 2018

Euro Retraces back against the Bulls on Monday after Italy's Coalition Governance gets underway

The Euro strengthened against the US Dollar on Monday as political tensions eased in Italy, supporting a rebound in risk appetite as worries about an escalating trade battle between the United States and the other major economics took a back seat.

German Chancellor Angela Merkel’s weekend statement that Germany was in favor of moves towards a European Monetary Fund to resolve issues of Euro Zone Sovereign debt sustainability also helped lift the currency confidence on the Euro.

Analysts believe this week could be highly volatile based on the Geo-Political stir-up and they also believe that further implications from Trump’s Administration could hinder the Dollar growth over the last weeks jump by rivals take charge across the board.

04/ 06/ 2018

Week Ahead | Geo-Political Jitter's will take Center Stage due to weak data outlook across the Globe

Euro declined against the Dollar on Friday after better-than-expected US employment data boosted the dollar. US Job growth accelerated In May and the unemployment rate dropped to an 18 year low of 3.8 percent as well, pointing rapidly tightening labor market conditions. Which could stir concerns about Inflation.

The employment report released by the Labor Department on Friday showed wages rising solidly, cementing expectations that the Federal Reserve will raise interest rate this month and boosting the probability of two more hikes later in the year.

Nonfarm payrolls surged by 223,000 jobs last month as warm weather bolstered hiring at construction sites. The economy created 15,000 more jobs than previously reported in March and April. Sterling picked up against the Dollar boosted by UK Manufacturing growth surged after reports on Friday.