On Wednesday afternoon, the main currency pair is trading on the upside due to a neutral external background and the lack of significant news.
Mid week is fairly quiet for the currency market. The current quote in the euro/dollar is 1.0935. The main currency pair is moderately rising for the second day in a row, taking a quiet external background for the main driver.
Today, Germany has presented statistics on the country's trade balance for October. The index was 22.5 billion euro against the September value of 22.8 billion euro. Exports for the period decreased by 1.2% m/m, and imports dipped by 3.4%. The decline in export is largely due to reduced demand in China and Russia. At the same time, Europe was still not able to maintain a stable domestic demand to stabilize the situation.
A representative of the European Central Bank, Mr. Nowotny stressed today that he fully agrees with the course of the regulator, voiced last week. According to him, the ECB must follow the risks of the development of "bubbles" with the similar effects as the power to stimulate the economic system.
Nowotny also believes the fact that the ECB does not have a goal for the exchange rate. Pretty sharp comments appeared towards the stock exchange investors – the monetary politician called market expectations on the outcome of the December meeting of the ECB "absurd". I wonder what was meant by that. After all, the European regulator has repeatedly announced its fiscal steps and it was not particularly surprising to the capital markets, also no polar opinions were present in the surrounding community. Quantitative easing was expected from the ECB, and its decision is reached in this outline.
It seems that any comments from the ECB, which will be heard in the near future, will be to divert the market’s attention from the timing of the QE and inflation. On the one hand, it is the right thing to do – the program needs some time to give the full effect. However, investors still have the right to know how the patient is actually feeling.
RoboForex Analytical Department
Without authorization, you can view no more than two reviews per day and no more than 10 per month. To continue reading analytical reviews, register or login to your Members Area.