On Monday afternoon, the main currency pair suspended growth as investors analyze the news on Greece and the Mario Draghi speech.
The euro/dollar grew for four sessions in a row, and only now stopped near the 1.1020 mark - too much information arrived at the beginning of the week. Its volume is forcing the market to pause for analysis and review the short-term goals.
On Monday, the newspaper Il Sole 24 published an entertaining interview with the head of the European Central Bank, Mario Draghi. According to him, the regulator is ready to use all available tools to keep inflation on the target levels voiced earlier. Let me remind you that the Target for the European CPI is 2%. It is still very far away. Draghi reiterated that in the event of a sharp divergence from the reality, the ECB plans to launch new incentives.
The regulator is well aware that at least until the beginning of 2016, inflation in the euro zone will remain near zero. Last published statistics confirm this view: October CPI in the euro area remained at the level of September with a decrease of 0.1%.
Comments from Draghi generally fit into the fabric of the fact that the ECB said earlier. The market is still convinced that the closer to the new year, the regulator will extend QE. It presses on the European currency. This factor has worked in the EUR / USD pair today.
Statistics published this afternoon, have already been priced in by the investors. The euro zone reported on the index of business activity in the manufacturing sector in October - the indicator rose to 52.3 points against the forecast of 52.0 points. A similar release in Germany has shown a value of 52.1 points versus the expectation of 51.6 points. French data of the same indicator showed a weakening to 50.6 points with the forecast of 50.7 points.
RoboForex Analytical Department
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