The dollar staged a broad-based rally on Thursday to make back some of the losses it had suffered earlier in the week which had been on the back of a poor ISM services PMI reading and last week’s disappointing jobs report.
ECB’s inaction clearly disappointed a few people as European stock indices dropped when the policy statement was released.
Bad news is good news for the markets that rely on central banks’ support. And so it proved again this morning’s as the latest European data disappointed expectations, yet the major stock indices rallied as if everything was just fine.
ad news out of Europe, Germany in particular, makes two potentially profitable outcomes significantly more likely. Firstly, the European Central Bank will be more flexible in its efforts to keep Greece in the Eurozone.
Dramatic monetary policies in Europe have lots of potential to create a new surge of hot money inflow into China, says Simon Derrick, chief currency strategist at the Bank of New York Mellon.
