#Daily_market_report Euro Near Two-Year Low Before German Ifo Report - GBP/USD inching higher, near 1.5670 - EUR/USD toying with 1.2400 The euro was about 0.3 percent from a two-year low against the dollar before a German report that economists said will show business confidence declined for a seventh month. The shared currency is heading for a fifth monthly loss after European Central Bank President Mario Draghi said last week officials “will do what we must” to raise inflation. The euro was little changed at $1.2396 at 7:06 a.m. in London after sliding 1.2 percent on Nov. 21. It dropped to $1.2358 on Nov. 7, the lowest level since August 2012. The single currency gained 0.1 percent to 146.12 yen. The yen was little changed at 117.89 per dollar. The euro dropped the most in seven weeks against the dollar on Nov. 21 after Draghi said policy makers will look to boost inflation expectations as quickly as possible. The ECB wants to increase the size of its balance sheet to early-2012 levels to help revive the region’s economy. The central bank has already cut interest rates to record lows and is buying covered bonds to stimulate growth. The pound is following the broader risk-on trade sentiment at the beginning of the week, pushing GBP/USD to test session highs around 1.5670. Spot managed to pick up pace from overnight lows near 1.5650, currently hovering over 1.5670 against a backdrop of an empty docket in the UK economy, at least until Wednesday, when GDP figures for the third quarter will be published. The common currency is posting marginal gains vs. the US dollar at the beginning of the week, taking EUR/USD back to the vicinity of 1.2400 the figure. The pair is slowly recovering part of the ground lost last Friday following the dovish appreciations by President Draghi, coming up from the 1.2370/65 band to challenge the 1.2400 handle. Ahead in the session, the German IFO indicator will take centre stage in Euroland while the services PMI gauged by Markit will be in the limelight across the pond. Arne Rasmussen, Chief Analyst at Danske Bank, noted “in our view the very soft rhetoric from the ECB is a short-term game changer for EUR/USD after the recent consolidation. Have a good day! Infinity International, Ltd
Posted on: Mon, 24 Nov 2014 09:12:57 +0000
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