SYDNEY: The euro opened the New Year at 29-month lows in Asia on Friday after the head of the European Central Bank admirer hopes it would take bolder steps on stimulus this month, emphasize the US dollar’s expanding yield advantage
The single currency sank as far as $1.2050, depths last seen in mid-2012, while the dollar notched up a near nine-year peak against a basket of major currencies and bounded ahead to 120.45 yen.
The euro is now perilously close to its 2012 trough, and major chart support, at $1.2042. A break there would take it to territory not seen since June 2010.
The latest lurch lower came after ECB head Mario Draghi said the central bank stood ready to respond to the risk of deflation. Consumer price data for the euro zone due on Jan. 7 is widely expected to show a fall in annual terms.
“We are in technical preparations to adjust the size, speed and compositions of our measures early 2015, should it become necessary,” said Draghi. “There is unanimity within the Governing Council on this.”
The ECB council meets on Jan. 22 and markets are wagering heavily it will finally decide to start buying sovereign debt, following in the footstep of the US, UK and Japan.
Oil was also active on Friday as prices tried to rally on news of a larger-than-expected fall in US crude inventory and a fire at a major US supply facility.
Yet the mood was fragile after last year’s savaging and sharp early gains were soon pared. US crude futures added 54 cents to $53.81 a barrel, while Brent rose just 17 cents to $57.50.
Stock markets in Asia were calmer with China, Japan, Thailand and the Philippines all on holiday. Australia’s main index and South Korea’s both added 0.5 percent and Hong Kong 0.8 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan
Was little changed, having ended 2014 almost exactly where it began – a pattern it has repeated for three years straight.
shanghai shares start week with losses 25 june 2018
Hong Kong, (UrduPoint / Pakistan Point News - 25th Jun, 2018 ) :Hong Kong and mainland Chinese stocks fell on...
