Forex Flash: Euro extends gains with sentiment buoyed by ECB – Wells Fargo (Barcelona) - Nick Bennenbroek, Head of Currency Strategy at Wells Fargo notes that the dollar is down while the Euro has extended yesterday´s gains, with sentiment buoyed after yesterday´s ECB monetary policy announcement.

He notes that the ECB President gave no hint the central bank was contemplating a rate cut any time soon, which markets took as a signal for Euro gains. He adds that the Swedish krona is also higher, but the pound is down while the yen fell on further signals from the Japanese government of aggressive policy action on both the monetary and fiscal front. The Australian and New Zealand dollars are down too. The main emerging market news today is from China, where consumer prices accelerated and the central bank repeated that it would pursue a prudent monetary policy.

He finishes by writing, “Altogether, the news from the past 24 to 48 hours has mostly been negative for the Greenback and positive for foreign currencies. While it is possibly a mild surprise that the U.S. dollar is not showing more consistent weakness, we suspect the near-term direction remains lower for the greenback against most foreign currencies.”