KBC Market Research Desk
KBC Bank
Currencies
EUR/USD
EUR/USD is locked in a sideways range. The dollar and the euro are more or less in balance as a delay in the Fed rate hike is counterbalanced by rising chances on more ECB QE. .
EUR/GBP
Sterling remained slightly in the defensive of late. UK eco data are a bit less buoyant. Global uncertainty is pushing BoE rate hike expectations further out in time..
USD/JPY
USD/JPY is holding a very tight sideways range close to the 120 level. Global uncertainty didn’t help the yen much further. Markets are still pondering the chances of more BOJ easing.
EUR/CZK
The Czech koruna settled close to the central bank’s (CNB) floor of EUR/CZK 27. In September, the koruna eased slight as markets didn’t fight the CNB commitment anymore to keep current policy in place at least till H2 2016. .
EUR/PLN
Global uncertainty and higher market volatility weighed on the zloty. Ongoing low inflation suggests the zloty won’t get interest support anytime soon.
EUR/HUF
EUR/HUF found a new equilibrium in the 310/315 area. The forint probably won’t get any interest rate support. The NBH stays in ‘easing modus’
This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.
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After the US close, it’s the Tokyo CPI
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