The Euro is back to its highs. Overview for 08.09.2017

The main currency pair is trading upwards under the influence of Mario Draghi’s “blurred” speech and the lack of interest to the USD.

This morning, the EUR/USD pair is rising and keeping yesterday’s momentum. The current quote for the instrument is 1.2086.

Yesterday, the market’s attention was focused on the September meeting of the European Central Bank. There were a lot of expectations that “super Mario” would tell something totally new about the QE program or the regulator’s monetary policy. Unfortunately, he spoke even more carefully than usual.

The ECB key rate remained unchanged at zero. The deposit rate also didn’t change at -0.4%. The same can be said about the QE program: it will continue at least until the end of the year with the monthly number of 60B EUR. According to Draghi, the QE program options had been discussed, but in general, without any specifics. The topic will be discussed in more details in October.

Apart from this, Draghi said that the ECB was watching the Euro volatility very carefully. And that’s all. No verbal interventions no comments about London’s or Washington’s attitude. The ECB Governor was quite brief and laconic, and his speech was composed in the way to prevent the capital markets from hearing and seeing more than necessary.

Nevertheless, the Euro strengthened against the USD and seems to continue its growth.

There are a lot of “anti-Dollar” factors right now. The USA didn’t have enough time to recover from “Harvey”, and now they’re already facing “Irma”. The Federal Reserve may postpone the rate decision until the next summer due to the mixed statistics and economic sentiments, and this is also not in favor of the USD.  

RoboForex Analytical Department