Remarkable ended Thursday. News and economic data have had a significant impact on the market, especially in the European currency. The European Central Bank surprised most market participants. How to interpret the events occurred and what impact they will have on the market in the future, read below.
Thus, the focus of the players was the currency pair EUR/USD. Everyone was waiting for data on the interest rate and the ECB conference and waited. When least expected, the ECB lowered the rate by 0.25 basis points. Euro moved down before the start of the conference. Yes, Mario Draghi promised to let him in the course of further stimulus measures if the inflation rate will be reduced, but this is almost a lightning decision was uncharacteristic of the Central Bank.
During the conference, participants will learn the market and the possibility of further rate cuts, down to zero, as a last resort. The pressure on the EUR/USD is maximum. Although against the worsening eurozone economic indicators, such a decision is justified Mario Draghi 's trying to keep a European ship afloat, after all, he is responsible for the economic health of the patient.
On the background of what happened European currency fell to 1.3295 against the U.S. dollar, but fell back after the mark of 1.3420 . Total for the day, EUR/USD is down more than 90 points. In the current situation of the European currency will be difficult to show at least some growth. If you think that this fight is over, you're wrong. The final blows were inflicted U.S. dollar, which has received strong support from economic data. GDP surpassed analysts' forecasts, and instead of decline, rose to a value of 2.8 %, which is almost a perfect la U.S. economy.
Social button for Joomla