On Friday, the main currency pair is trading near the lows it reached on January 12th; the Euro can’t find any support for recovery.
EURUSD is trying to reach stability on Friday morning, but the fact that the instrument is trading close to January lows doesn’t make the Euro happy. The current quote for the pair is 1.2112.
The ECB meeting that took place yesterday was over without any surprises. The benchmark rate remained unchanged at 0%. The same happened to the deposit rate and the marginal lending rate, which were also left unchanged at -0.4% and 0.25% respectively. Nothing has changed here for a long time – the time hasn’t come yet, as they say. The regulator reminded that the net asset purchases were to run at a monthly volume of €30B until the end of September, or beyond, if necessary, depending on the economic climate and inflation assessments.
However, during the press conference, the Euro was “hit” by the ECB Governor Mario Draghi, who said that at the moment the regulator should be very neutral in its estimations relating to the inflation. The Consumer Price Index is slowly growing and in the mid-term will continue moving towards its target, but may require the Quantitative Easing after.
Later, there appeared some speculations on the market that the ECB might decide to close the QE program during one of its summer meetings and close it in September. It’s not clear why the regulator would want to do this, and Draghi himself told on several occasions that the ECB wouldn’t stay ahead of the current economic situation.
In other words, due to these “blurred” inflation speculations the Euro couldn’t get any support from the ECB.
RoboForex Analytical Department