The euro came under selling pressure yesterday after preliminary Euro-area PMIs disappointed, prompting investors to bring forth their bets with regards to further action by the ECB, and increasing the need for governments to provide fiscal support. As for tonight, the spotlight will turn to the RBNZ, which decides on monetary policy. Following the “double cut” at the prior meeting, we don’t expect officials to act again at this gathering, but we expect them to maintain their easing bias.
Disappointing Euro-area PMIs Signal Need for More Support
The dollar traded mixed against the other G10 currencies on Monday and during the Asian morning Tuesday. It gained the most against GBP and EUR, while the main winners were NZD and JPY.
With no clear catalyst behind its tumble, the pound was yesterday’s main loser, with its...
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