The euro rallied on departing President Draghi’s comments following his last ECB meeting
Kathryn Garvey | October 24, 2019
The ECB meeting today left rates unchanged, but markets listened closely to outgoing President Draghi’s comments on the economy and Brexit. The pound and euro popped on the optimistic sentiment regarding Brexit and in turn sent the dollar slightly lower. Traders look ahead to next week’s FOMC meeting.
“Take the first step in faith. You don’t have to see the whole staircase, just take the first step.”Martin Luther King Jr.
October 24, 2019
EUR/USD 1.1123 GBP/USD 1.2875 USD/CAD 1.3080 AUD/USD 0.6828 USD/JPY 108.55 USD/CNH 7.0720 USD/ILS 3.5234 USD/MXN 19.0933 USD/CHF 0.9912 USD/INR 71.0250
The dollar was sent slightly lower this morning due to strength in the pound and euro following ECB President Draghi’s comments. Durable goods orders came in at -1.1% versus -0.7% expected. Weekly Initial Jobless claims came in at 212K versus 215K expected. September new home sales are due out at 10AM EST.GBPThe pound held in a tight range as the U.K. awaits the EU’s decision whether or not to grant another delay to Brexit. The pound popped slightly after ECB’s Draghi commented that he sees less of a chance of a no-deal Brexit. U.K. Labour’s spokesperson Rebecca Long-Bailey offered comments that they will be in favor of a general election once the EU agrees on an extension.EUR
Today’s ECB meeting left rates unchanged and Mario Draghi offered a gloomy outlook for the Eurozone economy in his last press conference as ECB President. Draghi said there’s a need for a “highly accommodative stance of monetary policy for a prolonged period.” The euro whipsawed erasing early session gains after business surveys pointed to stagnant Eurozone economic momentum, and then popped higher following Draghi’s comments.CAD
The loonie hit a three month high as gold and oil gained. The Bank of Canada will announce another rate decision next week.ASIA/PACIFIC
The Japanese yen gained as a haven after ECB president remarked that economic risk remains on the downside and that accommodation will be needed to meet inflation targets.
The offshore yuan (CNH) strengthened 25 pips verses the US dollar.
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