Futures Market News
Euro remains competitive with dollar as ECB prepares for Thursday meeting
Jul 03, 2012 11:46 AM
Tuesday saw the common currency of the European Union keep up with the U.S dollar, Reuters reports.
Policy makers with the European Central Bank are slated to convene on Thursday and conjecture indicates the financial institution will reduce interest rates from 1.0 percent to 0.75 percent. Skepticism for results from last week's two-day Brussels pact to help euro zone nations is growing stronger.
"One opinion is that the rate cut might boost risk sentiment and reduce the risk premium in the euro which could be positive, but a lower rate in itself would be euro negative," fund manager Jaco Rouw with ING Investment Management told Reuters. "In the longer term, based on economic developments, there is still room for more monetary easing in Europe so we would position for a weaker euro."
Speculation also is mounting that the U.S. Federal Reserve is preparing to implement another round of monetary easing after economic data indicated manufacturing decreased the most in nearly 36 months.
Producer price inflation in the 17-nation euro zone dropped to its slowest two years in May, which The Wall Street Journal reports is poised to prompt the ECB to slash interest rates.
Don’t Miss Our News Updates!
Share dt News:
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: The Future of Natural Gas in the U.S.
Are you interested in the Energy futures market? Sign up and receive our detailed report today!
Through our exclusive research, you will have access to current global events and price projections that may help you learn how this particular market has the potential to be a strong investment as a commodity.
Special Offer
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.
