FXstreet.com (Córdoba) - Currency markets are largely in a consolidative mode ahead of the key events of the week, namely the Federal Reserve policy announcement tomorrow and the ECB policy announcement on Thursday, notes the Wells Fargo team.
"Spanish and Italian sovereign bond yields are little changed, while the euro is somewhat higher despite comments from several German lawmakers who spoke against the proposal to give a banking license to the European financial aid funds", they say. "There have been few additional hints ahead of the ECB meeting, but hopes continue to run high for the central bank to offer significant steps to support the European economy and financial markets".
Meanwhile, most emerging and commodity currencies are in positive territory today, benefiting from central bank stimulus hopes, according to Wells Fargo. "Even though there is significant uncertainty whether the ECB and the Fed will do enough to keep the positive market mood intact this week, our overall bias remains in favor of further gains in risk-sensitive currencies against the greenback".
"Spanish and Italian sovereign bond yields are little changed, while the euro is somewhat higher despite comments from several German lawmakers who spoke against the proposal to give a banking license to the European financial aid funds", they say. "There have been few additional hints ahead of the ECB meeting, but hopes continue to run high for the central bank to offer significant steps to support the European economy and financial markets".
Meanwhile, most emerging and commodity currencies are in positive territory today, benefiting from central bank stimulus hopes, according to Wells Fargo. "Even though there is significant uncertainty whether the ECB and the Fed will do enough to keep the positive market mood intact this week, our overall bias remains in favor of further gains in risk-sensitive currencies against the greenback".
