Euro flounders at Yearly Lows

Good Morning,

- Euro flounders at Yearly Lows as likelihood of ECB QE increases...

- Asia Equities Update: Topix 1409.61 (+2.42%), Nikkei 225 17621.40 (+2.39%), Hang Seng 23116.63 (+1.25%), Shanghai Comp 3108.60 (+1.67%).

- USD outperformed against its leading counterparts Friday. JPY +0.55%, EUR +0.46%, CHF +0.45%, AUD +0.43%, GBP +0.28%, CAD +0.21%, NZD +0.04%. Most importantly. ….USdollar DXY weekly rsi > 70 for 16 consecutive weeks - this happened once for ICE USD index...in 1997.

-ECB's Constancio sees negative inflation rate in months ahead-magazine. European Central Bank Vice President Vitor Constancio said in a magazine interview he expected the euro zone inflation rate to turn negative in the coming months but that if this was just a temporary phenomenon, he did not see a risk of deflation.

- ENERGY: NYMEX WTI Crude 57.13 (+5.10%), ICE Brent Crude 61.38 (+3.56%), NYMEX Nat Gas 3.464 (-4.89%).

-Market worries about a Russian default may be easing, the 5y CDS spread has dropped to a weekly low of 438.50 as of Friday.

- The European Central Bank should start buying government bonds to tackle poor investor confidence and low inflation in the euro zone, governing council member Luc Coene said in an interview published on Saturday. The Belgian central bank chief said the bank had already waited too long, and that this could be one tool to spur economic activity in the 18-country euro zone and fight off deflationary pressures. "In this context, the purchase of sovereign bonds could prove to be an effective tool," he told La Libre Belgique.

- Richmond Fed's Lacker:- “Lower energy prices are like a tax cut for consumers. Also, pointed out that consumer attitudes and business investment are pulses.” Finally, he added that “Feeling reasonably positive about economy in 2015 alongside with the fact that Expect companies to sit on cash in low rate environment.”

- Norwegian Krone Under Pressure as Oil Drops.

-New Zealand Westpac Consumer Confidence 114.8 in 4Q vs. 116.7 in 3Q.

-DAX30 consolidated on Friday but a breakout above 9834 may trigger a resumption of the bullish trend.

-Major news for the week ahead: GDP, Durable Goods, PCE, UMichigan Sentiment , Housing

Have a great week!

Share: Analysis feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.