The Euro Declines Overview 20.07.2017

The main currency pair can't find any reasons for growth on Thursday. Currently it holds at 1.1484. The ECB has decided to leave the basic parameters of its monetary policy unchanged on July meeting. The basic rate is 0% per annum still, the deposit rate is -0.4% per annum. In its comments the bank said nobody would review the basic rate in the short term: according to the bank's plans, the cost of lending will stay unchanged for a long time.

The bank has once again pointed it can extend the QE program if needed. It turns out that investors are wrong for the 2nd time during this year hoping for the better. The European Cetral Bank has firm intention to wait for true economic recovery and only after that it will reduce its stimulus program.

The evening US statistics has showed that the number of claims for unemployment benefits fell to 233K last week. The estimated value was 245K. This can surely support the US dollar to a certain extent. Though we doubt the EUR/USD pair can leave the channel formed by 1.1485 and 1.1515 levels today.