Currency markets have been more subdued today with the Dollar ultimately treading water against most major currencies. The Euro weakened a little further yesterday after European Central Bank President Draghi reiterated that the tapered ending of the ECB’s quantitative easing program would be conditional on inflationary developments and repeated his concerns about the Eurozone’s growth outlook.
EUR/USD traded as low as 1.153 but has rebounded slightly today and for all the geopolitical noise in recent days the cross has been not moved much since the ECB’s policy meeting last week. Sterling, the Swiss France and Swedish Krona have also found their footing.
The focus today will once again be on central bankers with the heads of the European Central Bank, Federal Reserve, Bank of Japan and Reserve Bank of Australia holding a policy panel at 13.30 (London time) in the context of the ECB’s Forum on Central Banking in Sintra, Portugal.
