Investing.com - Financial Markets Worldwide

Potential Volatility On The Horizon

ByThe National Bank of Canada
Published 06/07/2013, 04:24 AM
Updated 05/14/2017, 06:45 AM
EUR/USD
0.00%

Thursday started off calmly, but ended with the greenback taking a dive against all major currencies, plunging 2.43%, 1.24% and 0.97% against the yen, euro and loonie respectively. The fall began at 9:30 with the EUR/USD pairing when European Central Bank President Mario Draghi spoke to the media and proved much less pessimistic than anticipated, stating that the European economy was poised for recovery this year.

These comments, combined with disappointing U.S. data released this week (lowest ISM level in 4 years, ADP jobs figures below expectations, Initial Jobless Claims up since the start of May), served as the pretense needed to launch a correction on the greenback. Markets are now lining up as if these numbers are an indication that the withdrawal of the current quantitative easing (QE) program will be postponed.

On Friday, the always crucial unemployment figures were released on both sides of the 49th parallel. On our side of the border, 15k jobs are expected. Stay tuned, as a great deal of potential volatility is on the horizon.

Range of the day: 1.0190 - 1.0300
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