EURJPY, USDMXN: FX Minor Pairs Affected By Policy Expectations
In today's #marketinsights video recording I analyse EURJPY and USDMXN!
Euro, although affected by expectations that ECB will not only cut but probably also QE, is trading relatively firm against a weaker yen. BoJ's ease seems to be taken to heart compared to ECB's as Japan is ultraloose already!
The Mexican Peso, on the other hand, seems affected by expectations the Fed's hiking cycle has now turned dovish, with FOMC expected to cut again next week!?
Economic data that affected Yen, Dollar and Mexican Peso -* Euro is affected by ECB policy expectations:
- JPY Core Machinery Orders m/m -6.6% vs -1.9%
- USD PPI m/m 0.1% vs 0.2%
- MXN Industrial Production n.s.a. y/y -1.7% vs -2.7%
Politics:
- China offers olive branch t US by reducing tariffs on certain US products
- Trump talks with the Iranian president to arrange a meeting
Monetary Policy:
- Markets expect ECB to cut, but not sure on QE yet. With QE we'll see double-whammy
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice.
Euro, although affected by expectations that ECB will not only cut but probably also QE, is trading relatively firm against a weaker yen. BoJ's ease seems to be taken to heart compared to ECB's as Japan is ultraloose already!
The Mexican Peso, on the other hand, seems affected by expectations the Fed's hiking cycle has now turned dovish, with FOMC expected to cut again next week!?
Economic data that affected Yen, Dollar and Mexican Peso -* Euro is affected by ECB policy expectations:
- JPY Core Machinery Orders m/m -6.6% vs -1.9%
- USD PPI m/m 0.1% vs 0.2%
- MXN Industrial Production n.s.a. y/y -1.7% vs -2.7%
Politics:
- China offers olive branch t US by reducing tariffs on certain US products
- Trump talks with the Iranian president to arrange a meeting
Monetary Policy:
- Markets expect ECB to cut, but not sure on QE yet. With QE we'll see double-whammy
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice.
