On Thursday afternoon, the main currency pair falls under pressure from Mario Draghi comments and fears of a new round of deflation in the region.
The euro/dollar is falling again. Sales volumes are not too big. The current quote in the main currency pair is 1.0717, and the minimum of today's session was 1.0691.
The head of the European Central Bank Mario Draghi said in a speech today that the regulator is ready to use additional fiscal instruments to enhance the effect of the already existing QE program. It will be discussed at the meeting of the Central Bank in December. There is nothing new in such rhetoric, as the ECB has previously emphasized its willingness to fight deflationary signs and phantoms. And both, by the way, are not becoming smaller - it seems that it is time to take decisive steps.
Inflationary pressures in the euro area continue to be barely noticeable. This is the foundation of the ECB headache – it has not been able to accelerate the consumer price index through a traditional fiscal framework due to the permanent "fall" in the cost of energy.
Today's statistics showed the presence of alarms in the manufacturing sector. The indicator fell in September by 0.3% m/m. Yearly the industrial production increased by 1.7%. It will be interesting to look at the later performance of the manufacturing sector – if encouraging signs can be found, it is only there.
RoboForex Analytical Department
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