Euro, EURUSD choppy trade remains within range today. But what is keeping the boil on Traders, EU politicians and central bankers’s mind ticking? The thought of euro surge and export dwindling.
Choppy Euro
The euro is poised on rising against a weak U.S. dollar and an under valued Chinese yuan.
A high-ranking E.U. envoy is now set to travel to China at the end of next week in a quest to persuade Chinese authorities to let their currency appreciate. Whether the Chinese would heed is another matter. As it is, it favors China’s export.
Trichet will join the party alongside the head of euro-zone finance ministers, Jean-Claude Juncker. German economist Reinhard Kudiss summed it up as an “.. act like a tax on exports”.
However, it’s no surprising. In recent weeks implied volatility expectations have dropped considerably from peaks. While this may not have resulted to intraday US Dollar price volatility slowdown but, markets remain extraordinarily choppy on a day-to-day basis as major currencies remain confined to choppy ranges.
Given the exceedingly low 1-week volatility expectations, we suspect that this may continue to be the case through near-term trading. Why not have your say? Use Comment form below.
Leave Your Response
You must be logged in to post a comment.