Dollar had a mixed session on
Friday, as it benefited against the Euro but fell against the Aussie. Oil and
commodities seem to be the cause of this, as supply concerns are in the
markets, even though oil prices have retreated from Thursday’s high.
ECB VP Constancio has said that
central bankers need to be extremely vigilant with respect to inflation
expectations and ECB member Draghi has said that central banks are trying to
assess whether the spike in oil prices wil have a permanent effect on inflation.
Cable pushed lower on Friday after
UK GDP came lower at -0.6% from previous estimated of -0.5%
USDJPY remains in the range of 80-85.
Seems like carry traders are not using the yen as a funding currency for carry-trade,
when they can receive reasonable pick up by borrowing short and lending long within
the single currency. This is because the yield curve is steeply sloped.
Data Today
Eurozone CPI – 10am GMT
US Pending Home Sales – 3pm GMT
No comments:
Post a Comment