The Eurodollar is waiting for American statistics
03.10.2014
On Friday morning the main currency pair is trading on the downside, having failed to keep positivity after the ECB meeting.
The EUR/USD this morning and is inactive and under a small amount of sales.
Yesterday was a regular meeting of the European Central Bank, during which the interest rate has remained at 0.05% per annum, as expected. The mechanism of low rates alone is not working properly, so the ECB still came to the redemption of assets and, as a consequence, stimulation.
The redemption of asset-backed securities is planned for two years. The exact amount of funds that will be allocated to this is unknown, but the market believes that it will be a little less than 1 trillion euro. The ECB is now very carefully monitoring its own balance sheet of assets and believes that it should be returned to the levels of 2012.
Additional mechanisms to stimulate the economy, in addition to repurchase of assets, are still unknown.
Likewise, it is unclear how these schemes will affect inflation. The consumer price index in the euro area in September remained at 0.3% y/y, and it is a very little capacity for the region. But now, it seems, the ECB is not frightened of deflationary signs.
With all that the euro/dollar is not too far gone from its two-year lows. It is clear that the ECB is very late with the stimulation, which reduces the effectiveness of current measures by about half.
Today the market offers data on European retail sales. In the evening, the United States will release a block of labour market statistics for September, and volatility in the euro/dollar will rise.
RoboForex Analytical Department
The EUR/USD this morning and is inactive and under a small amount of sales.
Yesterday was a regular meeting of the European Central Bank, during which the interest rate has remained at 0.05% per annum, as expected. The mechanism of low rates alone is not working properly, so the ECB still came to the redemption of assets and, as a consequence, stimulation.
The redemption of asset-backed securities is planned for two years. The exact amount of funds that will be allocated to this is unknown, but the market believes that it will be a little less than 1 trillion euro. The ECB is now very carefully monitoring its own balance sheet of assets and believes that it should be returned to the levels of 2012.
Additional mechanisms to stimulate the economy, in addition to repurchase of assets, are still unknown.
Likewise, it is unclear how these schemes will affect inflation. The consumer price index in the euro area in September remained at 0.3% y/y, and it is a very little capacity for the region. But now, it seems, the ECB is not frightened of deflationary signs.
With all that the euro/dollar is not too far gone from its two-year lows. It is clear that the ECB is very late with the stimulation, which reduces the effectiveness of current measures by about half.
Today the market offers data on European retail sales. In the evening, the United States will release a block of labour market statistics for September, and volatility in the euro/dollar will rise.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.