The euro was unable to consolidate its gains
16.04.2015
On Thursday afternoon, the EUR/USD is trading on the downside, despite the optimism of yesterday. The euro never learned to consolidate its successes.
The euro has done well: yesterday the main currency pair successfully and effectively played on all the drivers, which it was able to reach.
The regular April meeting of the European Central Bank was fairly standard. The interest rate remained at 0.05% per annum; the interest rate on deposits remained in the negative territory (-0.2%). Investors are waiting for the results of the first loose monetary policy and QE programs. As noted by Mario Draghi, the head of the ECB, the European economy is really starting to respond to incentives. But for a perfect result, Draghi says that first the entire program in the volume of 1 trillion euro needs to be completed and inflation needs to stabilize.
All this was clear even without the meeting. It has been a little over a month since the launch of QE in the European economy, the results cannot be seen yet. The meeting would have continued to be boring if an actively minded young lady had not intervened and rushed to Draghi with shouts like "stop the dictatorship of the ECB" and sprinkled the head of the ECB with confetti.
If every unintelligible meeting of the global regulator would occur with such a hidden surprise, there would be a lot more attention to this event.
But back to the nitty-gritty. The inflation target at the ECB is at the same level of 2% per year, no major changes here and never will be until the consumer price index starts moving in the right direction.
The euro/dollar also played on the statistics on industrial production in the US, and got ready for today's report. The current price in the EUR/USD is at 1.0630, and there is a tendency to decrease.
RoboForex Analytical Department
The euro has done well: yesterday the main currency pair successfully and effectively played on all the drivers, which it was able to reach.
The regular April meeting of the European Central Bank was fairly standard. The interest rate remained at 0.05% per annum; the interest rate on deposits remained in the negative territory (-0.2%). Investors are waiting for the results of the first loose monetary policy and QE programs. As noted by Mario Draghi, the head of the ECB, the European economy is really starting to respond to incentives. But for a perfect result, Draghi says that first the entire program in the volume of 1 trillion euro needs to be completed and inflation needs to stabilize.
All this was clear even without the meeting. It has been a little over a month since the launch of QE in the European economy, the results cannot be seen yet. The meeting would have continued to be boring if an actively minded young lady had not intervened and rushed to Draghi with shouts like "stop the dictatorship of the ECB" and sprinkled the head of the ECB with confetti.
If every unintelligible meeting of the global regulator would occur with such a hidden surprise, there would be a lot more attention to this event.
But back to the nitty-gritty. The inflation target at the ECB is at the same level of 2% per year, no major changes here and never will be until the consumer price index starts moving in the right direction.
The euro/dollar also played on the statistics on industrial production in the US, and got ready for today's report. The current price in the EUR/USD is at 1.0630, and there is a tendency to decrease.
RoboForex Analytical Department
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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.