On the eve of important events of the last week, market participants remained passive, as a result of which some currency pairs, including euro/dollar, were trading in a fairly narrow ranges. According to published data, the unemployment rate in the Eurozone remains high and consumer price inflation low, which kept the speculation about a possible further weakening by the European Central Bank of monetary policy, at the same time any actions from him at the meeting, which was held last week, were not expected.
Thus the preservation by the European Central Bank of interest rate and the volume of asset purchases was not a surprise for investors, so the euro response to the event was generally minor. In his comments at the press conference, the bank's president Mario Draghi did not give the slightest reason to expect a collapse of stimulus measures in the foreseeable future, and the euro came under pressure again, but its decline against the US dollar was limited by support in the area of 1.1140.
In the conditions of decrease of stock indexes the dollar with the beginning of last week, experienced the pressure from the Japanese yen, falling to support of 108.52. To support it, it failed, and released on Friday employment report in the US non-agricultural sector, which largely fell short of the predicted values, reaching the level of 38 thousand instead of expected 160 thousand of jobs. Thus, in spite of unemployment at the level of 4.7%, the dollar fell against the yen to 106.49, while the euro increased to 1.1373. Expectations of increasing by the FRS, in June, significantly fell , which will put pressure on the dollar, IAFT traders we recommend to be careful. However, its further losses could be limited. BlogLinks
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