Jeremy Cook, Chief Economist at World First the currency specialists gives us his opinion on the how the European Central Bank (ECB) changes last week have been reverberating in the currency markets.
“The ECB became the first central bank to cut rates on bank deposits into negative territory last week but the markets remain unsatisfied.
“Those looking for a dramatic fall in the value of the euro may have to wait and see whether unconventional measures bear fruit and help the European economy in the coming months.
“Elsewhere, the USD has performed well in the past month following a continuation of recent good news from the jobs market but out-performance looks unlikely until the Federal Reserve starts to worry about increasing wage inflation and the subsequent policy responses.”
Jeremy Cook, Chief Economist, www.worldfirst.com