Investors sold the euro yesterday following the ECB’s announcement of tapering its asset purchases to 30 billion euro a month starting January 2018 through September next year. The EURUSD fell over 1.4% on the day after investors saw that the ECB, despite tapering maintained a cautious stand.
The British pound was also seen coming under pressure as investor uncertainty grew on the prospects of a BoE rate hike next week. Thiscomes although the previously released GDP data was better than expected.
Looking ahead, the US preliminary GDP numbers will be coming out today. According to the economists polled, the US GDP is forecast to rise 2.5% on the quarter ending September. This comes after a 3.1% final revised GDP figures for the second quarter. However, various other estimates such as the Atlanta Fed’s GDPNow and the NY Fed’s Nowcast show a somewhat weaker GDP print.
