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Hardy: Euro rumours versus reality
You've got little more than rumours the ECB is considering a negative deposit rate but they were enough to provoke big falls in euro dollar and euro yen this Thursday. Saxo Bank's Head of FX Strategy, John Hardy, says it's a very odd situation. The markets appeared to ignore reality when the ECB actually cut its main interest rate. He says we were expecting euro dollar to come back lower and this appears to have been the trigger.
John also says we're seeing some "pretty impressive" and broad dollar strength. The release of FOMC minutes have been interpreted by some as suggesting a slightly more hawkish tone on QE tapering and for as long as that continues, says John, that could encourage further rises in the Greenback.
01:24 minutes
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