The differentiation between the Fed and ECB will prove vital for Draghi, urged Marcus Ashworth, Chief Market Strategist for Haitong Securities, when he joined Nick Batsford and Marc Ostwald on the Tip TV Finance Show.
Is China on the road to recovery?
Ashworth noted that China is back in-play with things becoming steadier, the country still has data issues but China also has lots to look forward to in terms of bigger business. He continued that it is very much a retail market, but he added that China doesn’t have institutional weight to get control over the market.
ECB has more to do, EURUSD parity possible
Ashworth highlighted that Draghi was unequivocal on Friday, with most of the market expecting a 15 basis point cut from the ECB. He expressed that the EUR staying below 1.10 is key for Draghi, and although parity on the EUR/USD is possible, Ashworth concluded that for this level to be achieved by Christmas is rather optimistic.
