Allan von Mehren
Danske Bank A/S
Market movers ahead
In Greece, anti-austerity party Syriza is poised to win the general election and Greece faces higher uncertainty and volatility.
Inflation is expected to have dropped further into negative territory in the euro area.
US GDP growth remained solid above 3% q/q in Q4 (annualised) supported by strong private consumption.
The Fed is expected to reiterate that it can afford to be patient at this week’s FOMC meeting.
The Danish central bank could be forced to cut interest rate further to stem the appreciation pressure on DKK.
Global macro and market themes
Euro risk assets are heading higher on ECB QE and growth recovery.
Too much doom and gloom – good news from the US and China as well.
The ECB surprise of buying 30-year bonds pushes yields to extremes.
EUR/USD lower short term.
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Editors’ Picks
EUR/USD retreats to 1.0750, eyes on Fedspeak
EUR/USD stays under modest bearish pressure and trades at around 1.0750 on Wednesday. Hawkish comments from Fed officials help the US Dollar stay resilient and don't allow the pair to stage a rebound.
GBP/USD struggles to hold above 1.2500 ahead of Thursday's BoE event
GBP/USD stays on the back foot and trades in negative territory below 1.2500 after losing nearly 0.5% on Tuesday. The renewed US Dollar strength on hawkish Fed comments weighs on the pair as market focus shifts to the BoE's policy announcements on Thursday.
Gold fluctuates in narrow range above $2,300
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51
Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version.
Softer growth, cooler inflation and rate cuts remain on the horizon
Economic growth in the US appears to be in solid shape. Although real GDP growth came in well below consensus expectations, the headline miss was mostly the result of larger-than-anticipated drags from trade and inventories.