November 12, 2009
Hawkish comments from ECB officials buoyed the EURUSD above the 1.5000 mark. As the pair inched close to its yearly high, it fell sharply as the USD rallied on investors' profit-taking.
ECB member Axel Weber highlighted the improved outlook for the euro zone economy. Although he says that its still too early to withdraw the ECB's easing programs, the central bank must also be careful not to miss the right time for exit. Meanwhile, Nout Wellink, another ECB official, noted signs of stabilization in the Dutch economy, hinting that excess liquidity will be mopped up soon.
We'll see whether these upbeat remarks about the euro zone's economy are echoed in the actual economic figures. Euro zone is set to report its industrial production data at 10:00 am GMT today. After posting a 0.9% increase in August, industrial production is projected to be up by 0.6% in September. If the actual reading beats the consensus, then the EURUSD might find itself back above the 1.5000 handle.
Later on, ECB President Jean-Claude Trichet is set to give a speech entitled "The Transatlantic Marketplace: Challenges and Opportunities Beyond 2009" at 7:00 pm GMT. Would he talk about the timing of future rate hikes? Better stay tuned!
"The only cable I watch is the pound baby."