Hawkish ECB Rhetoric Boosts The Euro - The....>

FOREX: Hawkish ECB Rhetoric Boosts The Euro

- The EUR received a boost in early Europe following hawkish rhetoric from ECB

officials, Chief Economist Praet said "signals showing the convergence of

inflation towards our aim have been improving" and "underlying strength of the

Eurozone economy persists." Further remarks from Weidmann that "expectations of

QE end in 2018 are plausible", strengthened the case of a live meeting next

week. EUR was bid across the board with EURUSD touching $1.1771, EURJPY

comfortably holds above Y129.00, EURCAD flirts with the 200-dma (C$1.5218).

- AUD remains top of the G10 pile following the overnight release of strong

Australian GDP. AUDUSD squeezed to $0.7673 but failed to make a convincing break

of medium-term down trendline resistance, last $0.7643.

- JPY underperformed across the board. USDJPY took out option interest through

Y110.00, extending the move to Y110.15. Decent gains were also witnessed for

EUR, AUD, GBP & CAD on the crosses.

- GBPUSD tracked the early EUR squeeze to $1.3429 and has largely consolidated

gains. EURGBP holds in the middle of its Gbp0.8739-65 daily range.