No clear conclusion for the latest ECB meeting – Market Overview

No clear conclusion for the latest ECB meeting – Market Overview

Yesterday's meeting of the European Central Bank did not have a definitive result.

After leaving monetary policy unchanged just like the markets had predicted, President Christine Lagarde confirmed that the asset purchase program's pace would be increased to curb a potential rise in long-term bond yields. This comment led to a slight decline in the Euro's price from the high levels it had previously reached.

But in a report released later, it was revealed that the increase in these asset purchases was significantly lower than what the markets had expected. In turn, they interpreted it as a lack of determination from the central bank, leading to the Euro's rise.

U.S Bonds – latest news.

After two days of calm during which the 3, 5 and 30-year U.S. bond auctions have been carried out without significant surprises, yields rebounded again strongly.

Tnote10 fell sharply to the lowest levels in the past few days, managing to exceed the yield of 1.60% slightly.

This return to uncertainty in the market has brought an increase in risk aversion after a few days of tranquillity caused by the fiscal stimulus package's approval and positive inflation data.

But investors don't seem ready to revert to previous enthusiasm levels so quickly. Fears regarding inflationary spikes and the increase in public debt in the United States could require greater support from the Federal Reserve if they want to stop the outflows currently taking place in the U.S. markets, potentially reaching Europe.

Banks such as Societe Generale and Deutsche Bank forecast an increase in the yield of the 10-year bond to levels above 2% by the end of this year.

The U.S. stock futures started the day with substantial losses, and the European ones are also in the red, with the U.S. Dollar resuming its upward path against all pairs.

EUR/USD reversed the move from the highs near 1.1990, trading slightly above the 100 hourly SMA line, currently at 1.1909. Below this level, it could work its way down to lows around 1.1860.

Sources: Investing.com, ForexLive.com.

Maklumat/penyelidikan ini disediakan oleh Miguel Ruiz (“tpenganalisis penyelidikan”) dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.

JME Financial Services (Pty) Ltd, beroperasi sebagai ZA.CAPEX.COM, bertindak sebagai perantara antara pelabur dan Magnasale Trading Ltd, rakan kontrak untuk perbezaan yang dibeli oleh pelabur melalui ZA.CAPEX.COM, yang diberi kuasa dan dikawal selia oleh Cyprus Securities. dan Suruhanjaya Pertukaran dengan nombor lesen 264/15. Magnasale Trading Ltd adalah prinsip utama CFD yang dibeli oleh pelabur.