Euro edges higher in record low currency volatility The euro staged a solid performance against its major rivals on Monday as expectations for more stimulus by the European Central Bank eased. Meanwhile a gauge measuring the volatility of currency swings for nine major currencies fell 25 basis points to its lowest in seven years. The Deutsche Bank AG Volatility index slipped 25 basis points to 6.24 percent. The single currency bounced off Monday’s low and held around 1.3869 on Tuesday versus the dollar and was up to 142.24 against the yen. Sources said that ECB President Mario Draghi assured German lawmakers that the central bank was still way off introducing a new asset purchases program despite sluggishly low inflation. German inflation figures today ahead of the euro area CPI print tomorrow will paint a clear picture and give further insight to the next moves by the ECB. A public holiday in Japan kept currencies moves muted overnight, but activity is expected to pick up as forex investors brace for several events this week including the Federal Reserve’s FOMC decision and change in non-farm payrolls. The Fed is expected to continue tapering by an additional $10 billion but future prices showed the benchmark rate will likely remain unchanged this year. The Aussie dollar slipped to a three-week low after iron ore prices plummeted while the Canadian dollar continues to miss out on gains recorded by its commodity-linked peers. The Bloomberg Correlation-Weighted Index shows the loonie 4.8 percent lower so far this year against a basket of ten major currencies. The sterling rallied to a four and a half year high on Monday against the buck to 1.6857. Good day
Posted on: Tue, 29 Apr 2014 07:26:49 +0000
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