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31 Jul 2014
Europe on brink of deflation - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that little may have happened in this consolidative Thursday, but at the end of the day, one thing stands out.
Key Quotes:
“Europe is at a brink of deflation with yearly basis inflation ticking down to 0.4% and the ECB at a cross road, condemning the EUR to fall if it acts increasing liquidity, or not acting at all next week”.
“But that’s looking way too ahead, as Friday will bring US employment figure, that an make it or break if for current dollar strength: market is expecting something around 230K in average with the last months, and anything above that should put the dollar in the bullish track; below 200K on the other way, will delay trends’ decisions to ECB meeting next week”.
Key Quotes:
“Europe is at a brink of deflation with yearly basis inflation ticking down to 0.4% and the ECB at a cross road, condemning the EUR to fall if it acts increasing liquidity, or not acting at all next week”.
“But that’s looking way too ahead, as Friday will bring US employment figure, that an make it or break if for current dollar strength: market is expecting something around 230K in average with the last months, and anything above that should put the dollar in the bullish track; below 200K on the other way, will delay trends’ decisions to ECB meeting next week”.