FXStreet (Guatemala) – Shaun Osborne Chief FX Strategist at Scotiabank explained that Eurozone industrial production rose 0.6% in October, well ahead of expectations.
Key Quotes:
“ECB President Draghi reiterated that the ECB would “intensify” stimulus, if needed. Governor Praet suggested that ECB action has eased monetary conditions significantly and that the central bank is “more open” to negative rates than before.
Dovish comments and shifting market pricing, which is starting to reflect the risk of additional easing steps in 2016, suggest any EURUSD rebound on the Fed is likely to remain limited.
We rather think recovery potential for the moment is limited to the 1.10/1.11 range. Note that 2Y spreads are nudging out a little again against the EUR; 2Y differentials are 3-4bps wider this morning at 125bps from levels seen last week.”
(Market News Provided by FXstreet)