ECB minutes: Look for any discussion on broader financial conditions - ING

Sandeep Kanihama FXStreet Contributor

ECB minutes will be the focal point for markets today (1330 CET) and once again it’s worth looking out for any comments on Eurozone financial conditions (which implicitly captures the EUR), according to Viraj Patel, Research Analyst at ING.

Key Quotes

“The ECB’s path of least resistance will be a gradual appreciation in the EUR. Our estimates show that the central bank’s ‘pain threshold’ – that is the point at which currency appreciation starts to weigh on the real economy – is a sharp move above 1.25 this side of summer. With policymakers likely to be wary of this – we expect to see fairly neutral ECB rhetoric, at least until they are comfortable to allow markets to price in the next stages of policy normalisation. For us, that’s a summer 2018 story (Sintra Part II) – with EUR/$ moving up to 1.25. For now, broad stability around 1.20 is likely.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

GBP/USD sticks to red near 1.3650, eyes on Iran sanctions

GBP/USD trades with a negative bias around mid-1.3600s at the start of a new week on Monday. The US Dollar recovers ground due to uncertainty over potential US economic sanctions on Iran, leaving the risk-sensitive British Pound on the backfoot.

EUR/USD stays defensive below 1.1700 amid cautious markets

EUR/USD is trading defensively below 1.1700 in Monday's European trading. The pair struggles as the US Dollar attempts a tepid recovery following last week's US Treasury bond buyback plan-led sell-off. Markets remain unnerved amid US threats to impose economic sanctions on Iran, the details of which are expected to be announced later in the day.

Gold sits at three-month highs near $4,650

Gold is sitting close to its highest level in three months, near $4,650, in the European session on Monday. The precious metal capitalizes on persistent US Dollar weakness, following the US Treasury's buyback plan amid fresh US-Canada trade tensions. Traders await Iran sanction details for further impetus.

Here's what I learned trading meme coins

I’ve been trading cryptocurrencies for the past seven years, with meme coins becoming one of the most exciting and implacable parts of my experience. I love them because they represent internet culture and community sentiment, and, let’s be honest, extreme speculation. Newly launched meme coins were especially tempting: get in early enough, I thought, and a small bet could turn into a huge return.

The week ahead: Jackson Hole and Nvidia results to take focus away from Trump

We start the week with the focus squarely on the US. Rising Treasury yields, the Jackson Hole Symposium, inflation and GDP data, along with tariff risks, will dominate market action in the coming days.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.