Neither release is likely to be seen to change the prospects for the economy going forward, which in turn means the positive impact on the dollar will be short-lived.
Overall, this week's data releases will help to continue to paint a picture of strengthening growth in the euro zone, but will hardly point to any acceleration.
Overall, he is opening the door to further rate hikes. It could also suggest that rates could go higher than currently priced in.
Overall, a disappointing number, but growth is set to bounce back strongly in the first quarter, with government consumption set to provide a positive contribution and consumer spending also likely to strengthen.
It is difficult to see the dollar succumbing to another bout of weakness prior to year-end, especially with (US) data releases likely to remain upbeat.
The prospects of a strong jobs report at the end of the week will offer some relief to US assets.
The prospects for the dollar are clearly negative following the speech, especially given the emphasis on the current account.
The data is positive for the euro, being one of the only data releases that the currency reacts to.
Volatilities have also been bid up across the curve and with the yen having breached key technical levels, it now appears to be preparing for an attempt at testing its September 1998 low of 129.03 against the dollar,
Euro zone finance ministers have warned consistently about currency volatility, but current levels appear to be no major concern.
The mood on the dollar is currently negative, the comments are playing into it. The market is short dollar and sentiment is weakening.
The momentum is pretty strong -- the market has turned bullish and this is largely due to their inflation fears and on expectations of higher U.S. interest rates,
The whole China effect is fading. We are moving back to trading in familiar ranges and the market is realizing it was not a big move.
Structural concerns have faded into the background (during 2005) as markets have been placated by the strength of capital inflows into US portfolio assets.
Structural concerns ... faded into the background (during 2005) as markets have been placated by the strength of capital inflows into U.S. portfolio assets.
It will be interesting to see how upbeat the Fed will be on growth prospects and how U.S. asset markets will react. Pre-Fed trading means we are likely to see tight ranges today.
Investors will look for any sign that he believes the Fed is close to the peak in its interest rate cycle.
The market fixation is back on yield again, and the yen's attraction as a funding currency will leave it vulnerable to further weakness despite ongoing strength in economic data.
The dollar may find some relief from the data, but this could be short-lived.
The market was looking for a weak number. There was a relief rally when the number came in stronger than expected.
The market has been very stretched on high-yielding (currency) positions...what we're seeing is a pullback from those positions.
