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Draghi sinks the EUR one last time -While.....>

FOREX
FOREX: Draghi sinks the EUR one last time
-While Draghi's final ECB rate decision provided little new on policy, the
single currency sold off nonetheless, edging just below the $1.11 handle as the
greenback firmed well alongside regional equities. GBP suffered another volatile
session as the government confirmed they'll aim for a December 12th election
which, should the EU provide a sufficient extension, the opposition Labour party
would accept. GBP/USD hit the week's lows on the news at $1.2789 but shows no
signs of a bearish breakout just yet.
-The outperformer in G10 was the JPY, which rallied on reports that the BoJ are
said to mull refraining from extra stimulus in October, and will instead look at
fresh ways to show its continued readiness to take action, according to
Bloomberg sources. This helped keep a lid on USD/JPY and pressured EUR/JPY
throughout the day. NZD held its weakness throughout European and US hours,
bottoming out at $0.6375.
-Germany's IFO data for October and the final Uni. of Michigan reading are the
data highlights for a relatively quiet Friday. ECB's Villeroy is due to speak.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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