Euro Price Forecast: EUR/USD, EUR/JPY Eyeing ECB Weekly Bond Purchases 2021-03-01 07:30:00 Daniel Moss, Analyst
Euro, EUR/USD, EUR/JPY, European Central Bank, PEPP – Talking Points:
Equity markets gained ground during APAC trade as the sell-off in global bond markets slowed.
The ECB’s weekly bond-purchase figures will be keenly eyed by regional investors.
EUR/USD perched constructively above key support.
EUR/JPY rates eyeing a break above key downtrend resistance. Advertisement
Asia-Pacific Recap
Equity markets rebounded robustly during Asia-Pacific trade as the sell-off in global bond markets slowed. Australia’s ASX 200 surged 1.74% higher, on the back of the RBA doubling its purchases of longer-term government bonds, while Japan’s Nikkei 225 soared 2.41%. China’s CSI 300 climbed 1.49% and Hong Kong’s Hang Seng Index rose 1.43%.
Euro Forecast: EUR/USD Outlook Improves as German Bund Yields Rise
Fundamental Euro Forecast: Bullish
The European Central Bank’s Governing Council has clearly decided to stress to the markets that it’s watching rising Eurozone sovereign bond yields.
That’s a way of signaling that it doesn’t want them to rise too far too fast.
But last week they rose anyway and that’s positive for both EUR/USD and the major Euro cross rates such as EUR/GBP. Advertisement
Euro price outlook positive
Members of the European Central Bank’s Governing council, including President Christine Lagarde, Germany’s Isabel Schnabel and Chief Economist Philip Lane, were all stressing last week that they are closely watching Eurozone sovereign bond yields – code for warning the markets that they don’t want them to rise too far too fast.
ECB still in wait-and-see mode as yields rise leaderpost.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from leaderpost.com Daily Mail and Mail on Sunday newspapers.
ECB still in wait-and-see mode as yields rise
The European Central Bank is monitoring the recent surge in government borrowing costs but will not target specific levels in bond yields or mechanically react to market moves, two ECB policymakers said on Friday.
Government bond yields around the world have rebounded from some of their lowest levels in history in recent weeks, mostly reflecting expectations of faster price growth in the United States.
Investors have been pondering at what point the ECB will increase the pace of its bond purchases to rein in yields, in keeping with its pledge to maintain financing conditions favourable for pandemic-stricken governments, companies and households.
Geldpolitik: Die Vollkasko-Mentalität der EZB birgt zwei große Risiken welt.de - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from welt.de Daily Mail and Mail on Sunday newspapers.