The big theme at the moment is rising bond yields as key central banks attempt to move away from the era of extraordinarily loose monetary policy and zero interest rates. This is due mainly to rising levels of inflation, higher rates of employment and steady growth across many developed economies.
Thursday may not be dominated by appearances from prominent central bankers like the previous two were but we’re continuing to see markets focus on what’s been said, with the euro and sterling both pushing higher again.
Another day in Europe is coming to an end, and those who like volatility were not left disappointed with the euro and pound making sharp moves as speculators responded to fresh rumors and comments from central bank officials.
Central bankers will be the center of attention over the next couple of days, with a number of policymakers appearing, including Federal Reserve Chair Janet Yellen, ECB President Mario Draghi and the Bank of England Governor Mark Carney.
The euro has been largely out of favor during the past five days and is set to end the week lower against most of her rivals. Thus, any strength in the pound is likely to be expressed in the euro/British pound currency pair in the short-term, as it was at the time of this writing.