The euro is above 1,14 against the dollar, the highest in 14 months, in a market that seems to ignore the ECB's attempts to cushion the markets' interpretation of President Mario Draghi's message.
Draghi's speech in Sintra on Tuesday — which came amid tightening signals from other central banks — prompted markets to believe the ECB is preparing an exit strategy from its bond-buying programme.
On the other hand, observes Mps Capital services, “the attitude of central banks on a global scale is becoming progressively more oriented towards filing strong accommodating policies. It is striking how these statements are coming in an almost synchronized way: after Draghi's words, BoE governor Carney on Wednesday referred to the possibility of discussing a rate hike
in the next months. The governor of the Canadian central bank is also on the same line. The unanimity and contextual nature of these statements seem aimed above all at raising long-term rates on the curve, in particular the ten-year sector. This trend is actually taking place with a consequent increase in the slope of the curve, a very important factor for the profitability of banks. For this sector in the USA the positive news has also arrived of the green light to the plans for the distribution of dividends and the purchase of treasury shares, which in the coming quarters could reach nearly $100 billion. Meanwhile, oil's recovery continues after US production and inventories data. However, the depreciation of the dollar did not stop with the euro which this morning exceeded the threshold of 1,14″.
Around 10,20 am, the euro traded up by 0,4% to 1,1416 against the dollar, after briefly pushing above 1,1428, the highest level since last June. The single currency rose by 0,6% against the yen to 128,52 yen.
The pound gains another half point in morning trading in London, stopping just below 1,30.
