Intra-Day Market Moving News and Views
EUR/USD - ... Although euro has chopped inside the 1-1/2 week 100 points range of 1.3333-1.3433, the fundamental outlook shud weigh on the single currency over coming weeks.
Reuters reported German Bund yields held near their record lows around 1% on Fri, with investors increasingly betting the ECB will ease monetary policy further to lift a stagnating economy struggling with low inflation.
Data showed on Thur the euro zone economy failed to grow in the 2nd quarter even before the sanctions the West n Russia imposed on each other over the conflict in Ukraine started to bite.
Ten-year Bund yields on Reuters closed near 0.966%, yields on lower-rated Italian n Spanish bonds also hit all-time lows at 2.579% n 2.272% respectively.
While the ECB is unlikely to take fresh measures in the next few months as it wants to assess the impact of cheap 4-year loans to the banking sector it will start to dole out in Sep n Dec, many in the market say it will eventually have to embark on asset purchases (QE).
But pressure on it to act sooner rather than later could accelerate this week if preliminary euro zone manufacturing activity data shows counter sanctions between the West n Russia are beginning to take a toll.
Against this backdrop, the market remained biased towards another downward lurch in Bund yields.
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