October 07, 2012
Over the last week the Euro rose to a two week high after the ECB kept interest rates on hold at 0.75% and U.S. jobless rate fell to under 8%.
It may be counter intuitive that the US Dollar drops on better US data. However a better than anticipated US jobs report supported risk on sentiment and thus the Euro on Friday as the country’s unemployment rate dropped to a near four-year low.
However it would need a string of much better employment reports to change a view that the Fed will be expanding its balance sheet by close to $1tn over the next year.
With investors still on risk-on/risk-off mode news of a Spain bail out will be a positive for the Euro although it amounts to the ECB printing money.
The next target for the Euro is 1.33 said Jean Jacques Chenier, AA Management founder.
Jean Jacques Chenier
AA Management Ltd.
Over the last week the Euro rose to a two week high after the ECB kept interest rates on hold at 0.75% and U.S. jobless rate fell to under 8%.
It may be counter intuitive that the US Dollar drops on better US data. However a better than anticipated US jobs report supported risk on sentiment and thus the Euro on Friday as the country’s unemployment rate dropped to a near four-year low.
However it would need a string of much better employment reports to change a view that the Fed will be expanding its balance sheet by close to $1tn over the next year.
With investors still on risk-on/risk-off mode news of a Spain bail out will be a positive for the Euro although it amounts to the ECB printing money.
The next target for the Euro is 1.33 said Jean Jacques Chenier, AA Management founder.
Jean Jacques Chenier
AA Management Ltd.
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