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Mar 10, 2021 18:31 GMTFXStreet News
EUR/USD saw modest strength in wake of weak US inflation data, but remains rangebound around the 1.1900 area.
The ECB is expected to hold policy settings steady, with the main focus on any rhetoric regarding rising bond yields.
EUR/USD currently trades flat on the day around the 1.1900 level, with sellers having come in to keep the pair from breaking above Monday’s highs in the 1.1930s. The currency pair is back to trading in its range of the last 36 or so hours, with a softer than anticipated US Consumer Price Inflation report for the month of February having failed at triggering any lasting USD weakness.
Mar 8, 2021 17:31 GMTFXStreet News
USD/CAD rose momentarily as high as the 1.2700 level but has since slipped back to the mid-1.2600s.
Consolidative conditions are unsurprising given key risks events in the US and Canada later in the week.
USD/CAD has slipped back from earlier session highs at the 1.2700 level, with sellers keen to keep the pair below the big figure ahead of the pair’s 50-day moving average, which currently resides at the 1.2709 mark. If the bulls do regain control and take USD/CAD north of 1.2700, significant resistance in the 1.2740-1.2750 area is worth noting (the early March and late February highs).
Is flexible inflation targeting still fit for the purpose it must serve?
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Is ‘flexible inflation targeting’ (FIT) ripe for a coup d’état that topples its almost three-decade grip on the ruling dispensations of central banks the world over? Pioneered by New Zealand as early as 1990, and soon emulated by Canada and the United Kingdom, FIT is now the de jure, or de facto, monetary policy of most major advanced and emerging market central banks, including the Reserve Bank of India (RBI).
Doubts about whether FIT was fit for the purpose began to grow after the global financial crisis of 2007-2009 and its aftermath. As this column has discussed several times, a monetary policy fixated solely on consumer price inflation (CPI), or some variant, failed to react to asset price bubbles that eventually burst and threatened to topple the entire global monetary and financial edifice.