EUR leading the rise in other currencies - AmpGFX

Greg Gibbs, Director of Amplifying Global FX Capital, notes that the EUR surged twice on Friday, after each of the Yellen and Draghi Jackson Hole speeches, but both did not speak on the issues the market was most interested in.   

Key Quotes

“Yellen did not draw the link from financial stability to monetary policy as many, including myself, thought she might. And Draghi did not discuss a widely anticipated QE taper, or the recent strength in the EUR. As such, the speeches removed risks that were holding back EUR demand.”

“One factor that may ultimately temper the EUR rally is if the market senses that the strength in the EUR starts to significantly weaken the medium term inflation outlook in the Eurozone. However, market indicators of inflation expectations remain stable in the region; albeit still below the 2% ECB target.”