6 Nov 2013
Euro jumps on reports that a rate cut is unlikely
FXstreet.com (London) - The euro has jumped on reports that a senior ECB has said that a rate change is unlikely tomorrow, despite the inflation dip.
The report from MarketNews drove the common currency up to highs at USD0.8414 , breaking out of a day of choppy trading.
Last week’s below-expected inflation numbers combined with high Eurozone joblessness numbers ramped up bets that the ECB might move to further cut base rates. Eurozone inflation printed at 0.7 percent in September, missing expectations of 1.1 percent. At the same time, Eurostat upward revised its unemployment numbers from 12.0 to 12.2 percent, undoing optimism that there had been some recovery in the Eurozone labour markets.
MarketNews report cites the senior ECB source as saying ECB will want to avoid over-reacting to fast-changing economic signals and avoid being wrong footed by a Fed tapering decision.
EUR/JPY has climbed 0.71 percent to JPY133.6925 on unwinding risk-averse yen positions.
The report from MarketNews drove the common currency up to highs at USD0.8414 , breaking out of a day of choppy trading.
Last week’s below-expected inflation numbers combined with high Eurozone joblessness numbers ramped up bets that the ECB might move to further cut base rates. Eurozone inflation printed at 0.7 percent in September, missing expectations of 1.1 percent. At the same time, Eurostat upward revised its unemployment numbers from 12.0 to 12.2 percent, undoing optimism that there had been some recovery in the Eurozone labour markets.
MarketNews report cites the senior ECB source as saying ECB will want to avoid over-reacting to fast-changing economic signals and avoid being wrong footed by a Fed tapering decision.
EUR/JPY has climbed 0.71 percent to JPY133.6925 on unwinding risk-averse yen positions.