The Euro did not enjoy its most productive week as losses against the greenback continued while fluctuating between losses and gains against the Pound. EUR/USD however remained the pair of interest, putting in a fourth week of losses against the US Dollar in succession.
The European Central Bank (ECB) policymakers have maintained a hawkish rhetoric for much of the week yet failing to offer the Euro any significant support. This may lie in the fact that markets are already viewing the ECB as the most hawkish Central Bank moving forward. Markets appear to have already priced in the hawkishness spouted by ECB policymakers of late with a significant change required for bulls to return.
The rally in the US dollar meanwhile continues as a deal on the US debt ceiling remains elusive as we head toward the new week. US Treasury Secretary Yellen did however adjust the date she believes the US could default as early as June 5 without a debt ceiling hike, previous date was June 1. The Treasury will make more than $130 bln of scheduled payments in first two days of June, including payments to veterans, social security and Medicare recipients. The new date does buy negotiators more time yet the longer this rumbles on the more volatility we may see in Markets.
The European Central Bank (ECB) policymakers have maintained a hawkish rhetoric for much of the week yet failing to offer the Euro any significant support. This may lie in the fact that markets are already viewing the ECB as the most hawkish Central Bank moving forward. Markets appear to have already priced in the hawkishness spouted by ECB policymakers of late with a significant change required for bulls to return.
The rally in the US dollar meanwhile continues as a deal on the US debt ceiling remains elusive as we head toward the new week. US Treasury Secretary Yellen did however adjust the date she believes the US could default as early as June 5 without a debt ceiling hike, previous date was June 1. The Treasury will make more than $130 bln of scheduled payments in first two days of June, including payments to veterans, social security and Medicare recipients. The new date does buy negotiators more time yet the longer this rumbles on the more volatility we may see in Markets.