ECB Rate Hike Likely After Inflation Data Supports Monetary Tightening
The Euro backed off in Asian trading after nearing the February 2 top at 1.3861. Although the slight break from the high at 1.3837 has the appearance of a daily closing price reversal top-in-the-making, there isn’t an apparent reason for the break at this time except perhaps the lack of fresh buyers.
Euro Sells Off after Reaching Minor Retracement Zone
News from the European Central Bank that overnight lending at the 1.75% penalty rate spiked 15.8 billion ($21.4 billion), the highest since June 2009, pressured the Euros overnight. Reports circulating suggest that this spike may be related to renewed problems in the Euro-Zone periphery.
Speculators Paring British Pound Positions after Weak Retail Sales
British Pound Posts Strong Rally after Testing 50% Level
Stocks and Risky Assets Down after Rise in Durable Goods
The U.S. Dollar is expected to open lower against most major currencies after failing to hold on to overnight gains from the Asian session.
Shortly before the New York opening, investors seem a little reluctant to be short the Greenback as finance ministers from the Group of 20 nations meet in South Korea.