The EUR\/USD pair is barely up 0.08% on Tuesday, following BoE\u2019s Baily remarks, which deteriorated the market sentiment. During the European session, the ECB Chief Economist Philip Lane said that the ECB would impact the markets by hiking rates than selling its hefty pile of bonds on Tuesday. Given that the ECB raised rates from -0.50% to 0.75% in two months, expectations of another large size increase remained high.
The pair trims earlier gains, courtesy of a risk-off impulse spurred by remarks of BoE\u2019s Governor Andrew Bailey after which the GBP\/USD fell below 1.1000, while the EUR\/USD followed, approaching the 0.9700 level.
At the time of writing, the EUR\/USD is trading at 0.9704 after hitting a daily high nearby the 0.9770s mark, threatening to print a daily close below October\u2019s 10 low of 0.9681.
Sentiment fluctuates, as reflected by the performance of US stocks, finishing Tuesday\u2019s session mixed. BoE\u2019s Governor Andrew Bailey startled investors when he said that UK\u2019s pension funds have just 3-days to rebalance, saying that the bond emergent program was part of the BoE\u2019s financial stability operations, not a monetary policy tool. Earlier, the BoE stepped in, buying inflation-linked government bonds.
On the US Front, Fed\u2019s Vice Chair, Lael Brainard, said, \u201cmonetary policy will be restrictive for some time to ensure that inflation moves back to target over time.\u201d She confirmed that the pace and size of further moves would be data-dependent.
In the meantime, the US Dollar Index, a measure of the greenback\u2019s value against its peers, is slight up at 113.273, bouncing off the day\u2019s lows on the risk-off impulse sparked by Bailey\u2019s comments.<\/p>\n","protected":false},"excerpt":{"rendered":"
The EUR\/USD pair is barely up 0.08% on Tuesday, following BoE\u2019s Baily remarks, which deteriorated the market sentiment. During the European session, the ECB Chief Economist Philip Lane said that the ECB would impact the markets by hiking rates than selling its hefty pile of bonds on Tuesday. Given that the ECB raised rates from …<\/p>\n","protected":false},"author":13,"featured_media":71176,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[7562,6967,6923,6884,6885,7717],"class_list":["post-73857","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-andrew-bailey","tag-boe","tag-ecb","tag-eur-usd","tag-fed","tag-lael-brainard"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/73857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=73857"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/73857\/revisions"}],"predecessor-version":[{"id":73864,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/73857\/revisions\/73864"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/71176"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=73857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=73857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=73857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}