24 Apr 2014
IFO will be the first test for the EUR – Danske Bank
FXStreet (Edinburgh) - In the opinion of Pernille Nielsen, Analyst at Danske Bank, tarders will closely watch the IFO release in light of the next ECB meeting.
Key Quotes
“Today, the FX markets will follow the IFO release closely as it is important input for the ECB’s decision to ease further or not”.
“However, for now the verdict is still out and EUR/USD continues to trade in a very tight range around 1.38 and implied option volatility continues to edge lower”.
“3M implied volatility has not been this low since 2007. The continued drop in volatility has continued despite the uncertainty regarding future monetary policy in both the US and the euro-area and the ongoing jitters in Ukraine”.
Key Quotes
“Today, the FX markets will follow the IFO release closely as it is important input for the ECB’s decision to ease further or not”.
“However, for now the verdict is still out and EUR/USD continues to trade in a very tight range around 1.38 and implied option volatility continues to edge lower”.
“3M implied volatility has not been this low since 2007. The continued drop in volatility has continued despite the uncertainty regarding future monetary policy in both the US and the euro-area and the ongoing jitters in Ukraine”.