Mario Draghi is on the Move
GBP/USD is currently trading at about 1.4230, GBP/EUR is trading above 1.3150 as the market opens up this Friday session, with the GBP/EUR moving higher over the course of yesterday as a result of a weaker #Euro.
Mario Draghi have been a savior of markets a fair few times in his position as #ECB President. Thursday Press Conference, while he didn’t add any new stimulus or cut interest rates, the strong hint that additional stimulus would be happening at the March meeting of the European Central Bank, has given equity market a lift.
Oil prices are a little bit higher as well, and we at Capital Street Research Desk continue to see the Euro a little bit weaker.
Draghi is not the sickliest of central bankers, he continues to reiterate that policy may change in the March meeting, that they were no limits for the European Central bank. The belief therefore, unlike we saw in Q4, expectations were getting too far ahead of themselves and that he may actually deliver something substantive for the markets at their March meeting as I’ve said in 6- weeks’ time.
There’s a lot of expectation management between now and then, but the #Euro moving lower is obviously a good thing for GBP/EUR and hopefully we can rebuild from there. U.K. retail sales is billed for today and we’re expecting a decent amount of growth as a result of the Cyber Monday shopping holiday experience, falling in the December figures, which may boost U.K. #retail sales.
Staying with the UK, we also await the public sector spending levels at 09:30 BST as well. The European Central Bank, the words from Mario Draghi and maybe a little bit of seller staleness allowing equity markets to move higher over the course of the day, at #CSFX Desk, we’re predicting today hopefully would be fairly quiet into the weekend.