FXstreet.com (Córdoba) - The US dollar is trading with a firmer tone, reflecting a more subdued market mood on Wednesday, according to the Wells Fargo team. "Soft global economic data is one of the main factors behind market caution, probably offsetting some of the positive impact from the recent policy easing actions by the major central banks".
Meanwhile, Wells Fargo points out that, it's been a relatively quiet day for European debt crisis headlines, which is likely more of a negative than a positive for the euro at this point, given the lingering uncertainty over Spain and Greece. "To an extent, today's market caution should also be viewed in the context of event risk in the last two days of the week, including the central bank announcements by the ECB, Bank of England and the Bank of Japan, followed by key US data."
"In the likely absence of significant policy moves from the central banks, we do not expect this week's events to offer a clear direction to the FX markets", analysts comment. "That said, we still believe that the eventual resolution of Spanish uncertainty should offer a boost to the euro and most other foreign currencies".
Meanwhile, Wells Fargo points out that, it's been a relatively quiet day for European debt crisis headlines, which is likely more of a negative than a positive for the euro at this point, given the lingering uncertainty over Spain and Greece. "To an extent, today's market caution should also be viewed in the context of event risk in the last two days of the week, including the central bank announcements by the ECB, Bank of England and the Bank of Japan, followed by key US data."
"In the likely absence of significant policy moves from the central banks, we do not expect this week's events to offer a clear direction to the FX markets", analysts comment. "That said, we still believe that the eventual resolution of Spanish uncertainty should offer a boost to the euro and most other foreign currencies".
