Currencies more steady ahead of European markets open

WCRS 13-09

There is little change among major currencies on the new day after a more hectic session overnight involving the ECB. The euro is little changed on the day so far with EUR/USD sitting in a narrow 17 pips range after a solid bounce overnight.
Other major currencies are also looking more flat as we begin the session as markets are taking things in stride with focus now turning to the Fed and the FOMC meeting next week.
The bond market initially loved the QE decision by the ECB but quickly fell off in the aftermath of the announcement, allowing yields to rise towards the end of the day.
I reckon purchases of €20 billion per month isn’t whetting investors’ appetite but the fact that it was open-ended may have given markets a bit of a tinker during the initial reaction.
In any case, it could also be related to markets quickly adjusting back to the theme this month i.e. correction/profit taking after the surge in August ahead of the Fed:
USGG10YR
Looking ahead, risk sentiment will be one of the factors to watch amid the ebb and flow but continue to keep an eye on the euro and potentially the pound (given some recent headlines that there could potentially be a way forward in breaking the Brexit impasse).
[“source=forexlive”]