OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: Eurozone debt crisis in remission – UBS

The imbalances between Eurozone countries have been in focus over the past two years, as though current account strains would somehow blow the currency union apart. Now, with the sovereign debt crisis in remission, attention has shifted instead to the Eurozone as a whole and its relationship with the wider world.

According to Research Analyst Gareth Berry at UBS, “Investors have not failed to notice the Eurozone's widening current account surplus, and today the ECB is due to publish December's data. Received wisdom suggests a surplus should help boost the euro. We mostly agree – a surplus is indeed a healthy development for the currency, but a closer look suggests over-optimism is not justified.”

As such, “Today's surplus is the result of last year's euro weakness – this has already reversed and soon the surplus will shrink too. Indeed, inbound portfolio flows are likely to be a more dominant euro driver over the months ahead.” Berry adds.

Forex: USD/CAD remains capped by 1.0080

The USD/CAD has entered in a consolidation phase on Monday after being rejected by the 1.0080 area last Friday. Amid low volume due to the holiday in US and Canada, the cross has spent most of the day rangebound, having set a low of 1.0055 in recent dealings.
Read more Previous

Forex: EUR/SEK potential upside ahead in the week – Danske Bank

The pair is inching higher on Monday, following a marked depreciation of the Swedish krona, giving away some ground after last week’s decision by the Riksbank to leave the refi rate unchanged at 1.0%....
Read more Next
Start livechat