Will the Euro continue its descent? 2

Yesterday’s markets

11th March 2015

  • ECOFIN Meetings
  • JOLTS Job Openings: 5m
  • BoE Gov Carney Spoke

Despite the lack of high tier market data released yesterday the Euro still continued to lose ground.  Since the start of this year the fall against the greenback is more than 10%, levels last seen in 2003. Some economists’ are now proposing parity by the end of the year. Currently the Fed are looking to raise interest rates possibly this year, the European Central Bank are still trying to combat inflation and growth with monetary easing (QE).  The divergence of monetary policies between the ECB and the Federal Reserve is the main driving force of this current single currency weakness.

Another positive labour figure was posted yesterday by the U.S. The Jolts job openings for January registered 5.0 million new jobs, slightly higher than the revised December figure of 4.9m.  Although below market consensus the healthy data gives more reason for the Fed to raise rates sooner than expected. 

Overnight Chinese industrial production hit the wires. Industrial production in the world’s second largest economy missed analysts’ estimates in January and February, as the reading posted its worst reading in six years at 6.8%. China’s economy is already behind target as monetary easing shows few signs of traction.

 

Today’s markets

10th March 2015

  • CNY Industrial Production y/y
  • ECB President Draghi Speaks
  • UK Manufacturing Production m/m
  • MPC Member Speaks

On today’s docket, the U.K. release the Manufacturing and Industrial production monthly figures with both gauges expected to increase. Mario Draghi, head of the ECB will be speaking early this morning at a conference in Frankfurt and markets will look for any clues on the ECB’s current QE program or the “Grexit”.