That wild partying by the euro in the wake of the ECB’s policy statement may have been a bit too much excitement for a currency that hasn’t been trading with significant strength for some time. It was fun while it lasted, but Mr Draghi is already taking down the bunting and switching off the lights with comments that are carefully crafted to bring the euro back to weaker levels.
There’s more going on than just the euro, though, and this week we also look at the pound, the US dollar and …

The market’s immediate reaction to the long-awaited ECB meeting has been one of disappointment. ECB President Mario Draghi confirmed that there will be no extra monetary quantitative easing each month, but the programme will be extended to “at least March 2017.”
The deposit rate has also been cut by a further 0.10%, taking it down to -0.30%. This was not enough to satiate the market, and the anti-climax has sent the euro rallying by over 2% against the US dollar and the pound.
As crestfallen as the markets may be, this means …

December is set to be a crucial month for central banks in the US and Europe, as markets expect major decisions in the weeks to come. The US dollar has continued to strengthen against its major counterparts as we head into the week. Though there is a spate of US economic data to be released today, markets will be keeping a close watch on Friday’s non-farm payroll report and Federal Reserve Chair Janet Yellen’s speech for signals on interest rate rises.
After all the months of speculation, it looks increasingly likely …