Euro should remain bid on dips

SINGAPORE (Reuters) – The euro inched lower on Tuesday, taking a breather after having rallied on the back of optimism about the euro zone’s economic outlook and expectations for the European Central Bank to wind down its massive monetary stimulus.

Comments by the Estonian central bank chief and ECB rate-setter Ardo Hansson on Monday reinforced those expectations, with Hansson telling a German newspaper that the ECB could end its 2.55 trillion euro bond-buying scheme in one step after September if the economy and inflation develop as now expected.

The euro eased 0.1 percent to $1.2253 EUR=, edging away from Monday’s peak of about $1.2296, its strongest level since December 2014.

Market participants, however, said they expect the euro to remain on solid footing in the near term.

“The markets are going to continue on with this trend,” said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore, referring to the euro’s recent gains.




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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes