2 Jul 2013
Flash: The European session - TD Securities
FXstreet.com (London) - Jacqui Douglas, Senior Global Strategist at TD Securities, explained that the European session was a pretty quiet one, with next to no data.
“The big overnight event (the RBA decision) already having happened by the time that London walked in.” She explains the RBA’s on-hold decision was as expected by most analysts, including TD, but leaving the door wide open for easing and comments about “possible further depreciation” continued to dampen the AUD, reversing the overnight rally.
Jacqui Douglas said the AUD continued to look soggy through the European trading session, while the EUR took a dive after news reports suggesting that the ECB is contemplating forward guidance. However, the research team thinks that anything even remotely like the Fed’s current threshold-based guidance is out of the question, and not at all keeping with the ECB’s style. But they said we might see more emphasis on the fact that the ECB is going to keep policy accommodative for as long as needed, in an effort to manage rates lower.
“The big overnight event (the RBA decision) already having happened by the time that London walked in.” She explains the RBA’s on-hold decision was as expected by most analysts, including TD, but leaving the door wide open for easing and comments about “possible further depreciation” continued to dampen the AUD, reversing the overnight rally.
Jacqui Douglas said the AUD continued to look soggy through the European trading session, while the EUR took a dive after news reports suggesting that the ECB is contemplating forward guidance. However, the research team thinks that anything even remotely like the Fed’s current threshold-based guidance is out of the question, and not at all keeping with the ECB’s style. But they said we might see more emphasis on the fact that the ECB is going to keep policy accommodative for as long as needed, in an effort to manage rates lower.