FXstreet.com (Córdoba) - The US dollar and Japanese yen are generally firmer as market optimism has faded somewhat over the past 24 hours, says the Wells Fargo team. "After US stocks closed in the red yesterday, Asian and European equities have also headed lower today, while the periphery-core Eurozone bond yields are somewhat wider".
"In the absence of clear catalysts for a more subdued market mood, we suspect today's moves can be seen as a sign that the markets are not yet fully convinced that the worst is behind for the European debt crisis or the global growth outlook, and that there is still sizeable uncertainty surrounding next month's policy announcements from the ECB and the Fed", Wells Fargo says. "That said, the euro has so far managed to hold on to most of yesterday's gains, while the British pound is also showing some resilience".
"Markets will be watching closely the minutes from the August Fed meeting today, although those looking for a clearer easing signal may be disappointed", they add. "While a non-committal Fed tone could keep the cautious market mood intact, we still see risk sentiment improving gradually over the coming weeks and months".
"In the absence of clear catalysts for a more subdued market mood, we suspect today's moves can be seen as a sign that the markets are not yet fully convinced that the worst is behind for the European debt crisis or the global growth outlook, and that there is still sizeable uncertainty surrounding next month's policy announcements from the ECB and the Fed", Wells Fargo says. "That said, the euro has so far managed to hold on to most of yesterday's gains, while the British pound is also showing some resilience".
"Markets will be watching closely the minutes from the August Fed meeting today, although those looking for a clearer easing signal may be disappointed", they add. "While a non-committal Fed tone could keep the cautious market mood intact, we still see risk sentiment improving gradually over the coming weeks and months".
