Single Currency Hit 3-Week Maximum On QE Exit
The Euro/Dollar pair rose 0.40% to trade at 1.1822. German Factory Orders dropped 2.5%. Eurozone Revised Gross Domestic Product fell to 0.4%. Today, the US releases jobless claims. Euro reinforced to the 3-week maximum thanks to comments from the ECB officials. The currency reinforced to its 10-day maximum versus the greenback. Peter Praet (ECB chief economist) confirmed that inflation is getting closer to the 2% objective and that the asset purchase program exit will be discussed next week. Thus, the QE exit by the end of this year is much likely. If officials make any more hawkish statements, EUR/USD will soar.
Tomorrow, Canada will host a 2-day G7 summit, which is expected to focus exclusively on US protectionist trade policy. Angela Merkel admitted the discussion will be difficult, saying “it is apparent that we have a serious problem with multilateral agreements here, and so there will be contentious discussions.” Emmanuel Macron, in his turn, told US that he refused signing a joint statement out of the G7 summit if there was no progress on tariffs, Iran nuclear deal and the Paris climate accord.