S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico MarketMarkets remain aligned with European Central Bank (ECB) hawks, who see little scope for further rate cuts despite dovish voices calling for flexibility, ING’s FX analyst Francesco Pesole notes.
EUR/USD seen anchoring near 1.170
“Despite some scattered calls for retaining flexibility by ECB doves after the December meeting, markets remain aligned with hawks like Isabel Schnabel, who has clearly pointed out that further cuts are unlikely in the foreseeable future.”
“EUR/USD remains driven by the dollar leg for most of it. The US’s increasingly hawkish narrative on Greenland is surely a frontier risk to keep an eye on. EUR/DKK is an interesting gauge to monitor in this sense. It’s already trading on the strong side relative to the peg, which would likely need to be defended with heavy intervention should the US move militarily in Greenland.”
“Barring escalations on that end, we think EUR/USD may build an anchor around 1.170 in the near term.”
