The EUR/USD pair is trading downwards despite yesterday’s volatility. It looks like the market sentiment is changing slowly.
On Friday afternoon, the main currency pair is falling. The current quote for the EUR/USD pair is 1.1262. Yesterday evening, the Euro was growing actively despite ultra-soft attitude of the ECB.
Another meeting of the ECB finished on Thursday. As a result, the entire monetary policy was left intact. The head of the ECB, Mario Draghi said in this comments that the interest rate would remain the same or even lower for quite a long period of time. Right now, the rate equals zero, which means that it might remain the same even after the QE program stops. Draghi repeated his “mantra” again, that if necessary, the ECB will use all available tools to support the Eurozone economy. In the nearest future, the inflation may become negative, but the ECB bets on the second half of the year. There is a possibility that it will be then when inflation processes become more active.
You know, it’s quite interesting. Almost all Central Banks in the world are hoping for the second half of the year in the same the way preschool children are waiting for Santa Claus. What might happen after the third quarter is a mystery. Extraordinary consumer demand is doubtful, stabilization of energy prices is questionable as well.
Today they published the statistics on the private sector activity in April. The PMI decreased up to 53 points against 53.1 points before. The predicted number was 53.3 points. At the same time, the manufacturing PMI decreased up to 51.5 points against 51.6 points in March. This indicators was also expected to increase, but alas.
The next week will be very rich in both events and statistics. The Federal Reserve is going to have another meeting and any indication to some particular moment of tightening the monetary policy will be in favor of the US Dollar. The United States will publish a vast amount of statistics, including the GDP report for January-March 2016. The Eurozone will publish the data on the inflation in April.
RoboForex Analytical Department
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