Despite disappointing growth data out of the Eurozone and Japan risk assets are holding up well, spurred by comments by Fed Chairman nominee Yellen who defended the Fed’s quantitative easing programme and gave little sign of an imminent tapering.
Consequently equities and gold rallied, while US Treasury yields slipped. The USD held firm benefitting from the relative growth weakness in the Eurozone and Japan, with USD/JPY finally breaking through the 100 psychological barrier.
Eurozone GDP came in at just 0.1% QoQ barely expanding over the third quarter while Japanese growth slowed to annualised rate of 1.9%.
The data highlighted the potential for more policy steps from the ECB although the Japanese growth slowdown was seen as temporary.
Consequently equities and gold rallied, while US Treasury yields slipped. The USD held firm benefitting from the relative growth weakness in the Eurozone and Japan, with USD/JPY finally breaking through the 100 psychological barrier.
Eurozone GDP came in at just 0.1% QoQ barely expanding over the third quarter while Japanese growth slowed to annualised rate of 1.9%.
The data highlighted the potential for more policy steps from the ECB although the Japanese growth slowdown was seen as temporary.
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