KBC Market Research Desk
KBC Bank
The euro sell‐off continues today following the ECB’s QE announcement yesterday. EUR/USD dropped from 1.1366 this morning to 1.1220 currently, the lowest level since 2003. EUR/JPY fell through a major support level at 134.14 and even tested the MT neckline at 131.22 in the same move.
European shares extend yesterday’s rally, gaining up to 2%. Most indices increase already for a 7th consecutive session. In the US, sentiment on the equity markets is less buoyant following disappointing earnings from UPS and Mc Donalds. US Equities trade mixed currently.
Sweden’s central bank could quickly boost its balance sheet by buying bonds, the Deputy Governor of the Riksbank said today, adding that they are technically prepared and could prove it when necessary. The comments failed to really weaken the SEK.
UK retail sales held up surprisingly well in December. Retail sales rose by 0.4% M/M, following already strong gains in the previous two months, while the consensus was looking for a limited drop. The figures raise expectations for next week’s Q4 GDP data.
On Sunday, National Elections will be held in Greece.
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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