OB: The dollar is on track for its best month since January
Currently, any sufficient support is not seen in the Governing Council, particularly the hawks, but the moderate council members might support the drastic changes in the current European Central Bank policy.
Money markets are expecting a cut of at least 10 basis points in the ECB's deposit rate, while economists in a Reuters poll predicted the bond-buying will be increased to 75 billion euros a month from 60 billion. Neither EconoTimes nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.
"The ECB is likely to announce more monetary stimulus at their policy meeting on Thursday, which should see EUR/USD end the week lower and generate a drag on AUD/USD", said Richard Grace, chief currency and rates strategist at Commonwealth Bank.
Anheuser-Busch InBev NV (ABI.BT) (ABI.BT) added 0.1% after news the brewer plans to sell two of SABMiller PLC's (http://www.marketwatch.com/story/ab-inbev-plans-to-sell-grolsch-peroni-brands-2015-11-30)(SAB.JO) (SAB.JO) best-known beer brands, Grolsch and Peroni, as the company seeks to ease European regulatory concerns over its pending acquisition of its rival.
By contrast, the Fed is expected to raise USA interest rates for the first time in nearly a decade later in December, based on a succession of data shows the US economy growing at a healthy pace.
"Arguably the U.S. is going to dictate the overall direction of trading this week, especially with an incredibly important non-farm (jobs reading) Friday on the cards", said Connor Campbell, analyst at Spreadex trading group. Save Money on International Payments If you're looking to make an international money transfer, we recommend TorFX as our preferred currency provider.
The euro slid to its lowest level since April and is down 3.9 per cent in November, heading for its biggest monthly decline since March.
Ten-year ringgit sovereign debt yields 4.19 per cent, compared with 0.47 per cent for German bunds.
Rising US bond yields are great news for the dollar, but bad for the euro, especially with so much of the benchmark euro zone government curve already steeped in negative territory. With the odds of a US interest-rate increase in December holding above 70 percent, the focus is shifting to policy divergence and how other central banks may respond to Fed tightening.
Daleen Hassan, euronews: "Through your constant monitoring of the central banks' policies, which scenario is the most likely decision for the ECB in the current situation?" But it remains below this year's high of about 1.86 percent.
Nour Eldeen Al-Hammoury: "Cutting the deposit rate further will of course increase the pressure on the euro".
The ECB is forecast to boost stimulus even though the institution is less than halfway through its bond-buying program. Such a move would allow the European Central Bank to extend QE well into the second half of 2018, according to private estimates.
Mainland Chinese shares opened slightly higher but then sank 1.7 per cent, after posting their biggest one-day drops in more than three months on Friday. As for the euro here in the region, we noticed that the majority of our clients are favouring selling the euro on even limited bounce (limited effect), which was a successful strategy throughout the year in the Middle East and the world.
