Comments on the results of the October meeting of the European Central Bank have considerably weakened the euro currency.
The single European currency has stabilized on Friday afternoon, but still remains in a weak position in tandem with the US dollar. The current quotation of the main currency pair is 1.1136, the euro is recovering by 0.2%.
The October meeting of the ECB was not as neutral as it would have liked to show by the first news after its completion. The rate was left at a record low of 0.05% per annum, and the fiscal policy was left unchanged. But that is just for now.
All the revelations were contained in the comments of Mario Draghi after the meeting. He said that the regulator is ready to expand QE in December. Apparently, the last two releases on inflation have been seriously evaluated by the Central Bank and their apparent threat to the financial stability of the region, since the ECB is going to such a step.
Interestingly, the list of reasons for the weakening of inflation contains the item of "appreciation of the euro by 8%" - yesterday's drop in the euro currency by more than two figures was profitable for the ECB as well. The EUR can hardly quickly make up for yesterday’s loss, once the regulator intends to soften monetary conditions an additional way.
The estimated range in trading in the euro/dollar today is 1.1100-1.1150. Later in the afternoon market activity will abate: ahead is the Fed meeting, and this is very important.
RoboForex Analytical Department
Without authorization, you can view no more than two reviews per day and no more than 10 per month. To continue reading analytical reviews, register or login to your Members Area.