OctaFX | OctaFX Forex Broker
Open trading account
Back

Forex Flash: Bad economic news is good financial news for Euro amid ECB cut expectations - DBS Group

FXstreet.com (Barcelona) - DBS Group analysts note that European stocks were up and sovereign yields down, as the latest bout of poor Eurozone economic data heightens expectations of an ECB rate cut as soon as May 2nd.

ECB Deputy President Vitor Constancio said that inflation was going down significantly, and that the central bank was ready to further loosen its already accommodative conditions if the economy kept worsening. Then again, they note that Constancio also believes that commitment to fiscal consolidation and structural reforms are necessary preconditions for struggling EU nations to return to growth. Other ECB officials also argued that the effectiveness of another easing would be limited. They finish by writing, “Hence, a rate cut next week is still a possible but improbable outcome. Nonetheless, both EU leaders and the ECB need to find middle ground for a rate cut down the road as a signal for policy to returning to growth too. The ECB has provided a back-stop for troubled EU government bond markets during the crisis. Policymakers now need to do the same for the economy.”

Forex: GBP/JPY pares losses to trade at 152.80/85 after GDP in UK

The GBP/JPY has rallied sharply following the release of upbeat UK data Thursday. Whereas the pair was trading negatively during European trading this morning, it has clearly found a welcome boost, launching to the 152.80/85 level in these moments, +0.60% above its opening levels.
Read more Previous

UK: Annual GDP rises 0.6% in Q1

Preliminary annual UK GDP data for Q1 2013 points to a 0.6% increase, up from the 0.2% rise registered in Q4 2012, National Statistics revealed on Thursday. Analysts expected 0.3% growth.
Read more Next
Start livechat