ECB's Coeure: APP has remained a considerable source of financial easing

Eren Sengezer FXStreet

"There is convincing evidence that supports the view that the APP has remained a considerable source of financial easing also after the end of net purchases," European Central Bank Governing Council member Benoit Coeure said in a recently delivered speech.

Key quotes (via Reuters)

In some countries, like France and Italy, reinvestments as a share of total gross issuance are expected to rise in 2020.
I would argue that the effects of asset purchases are highly persistent, and that they have affected recent pricing dynamics.
The stock effect of our purchases will continue to be significant.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD remains bid, focus stays on 1.1900

EUR/USD has broken its two-day run of losses and is ticking modestly higher on Thursday, hovering around the 1.1880 area as the US Dollar struggles to find clear direction. Weekly Initial Jobless Claims rose more than expected, taking a bit of shine off the Greenback, but markets are largely in wait-and-see mode ahead of Friday’s US CPI release.

GBP/USD sticks to the bid bias, still below 1.3700

GBP/USD is trading with decent gains around 1.3650 on Thursday. Indeed, Cable is attempting to shake off the weakness seen earlier in the week amid another choppy session for the Greenback, while a run of disappointing UK data has so far failed to derail the pair’s tentative recovery.

Gold recedes slightly, trades below $5,100

Gold remains stuck in choppy trade on Thursday, deflating marginally just below the $5,100 mark per troy ounce as the US Dollar drifts without a clear trend. Softer US Treasury yields across the curve are offering some support, but with markets treading carefully ahead of Friday’s US CPI release, conviction remains limited and price action continues to look hesitant.