The USD is feeling like a winner. Overview for 09.03.2018

The main currency pair plummeted yesterday and right now is trading close to this week’s lows.

EURUSD plummeted towards the week’s lows during the trading session yesterday. The current quote for the instrument is 1.2313.

The European Central Bank had another meeting yesterday, where it kept the benchmark rate at 0% and the deposit rate at -0.4%. However, other things except these made investor feel nervous. ,

First of all, the ECB changed its Statement once again. This time, the regulator dropped its commitment to increase the size of the QE program by removing the easing bias from its monetary policy message. Investors really couldn’t miss that and the Euro seemed to start rising. However, the following comments from Mario Draghi, which were related to the economic outlook of the Euro Area, sounded pretty uneasy and alarming, thus putting pressure on the Euro.  

Draghi, just like heads of other global regulators, is very worried about possible economic warfare in the financial world. He said that any controversial point should respect the interests of all parties and has to be solved diplomatically, but not on an ex parte basis.

The ECB’s economic outlook is now looking more positive. According to revised expectations, the Euro Area GDP may improve by 2.4% instead of 2.3%, and the inflation may probably remain at 1.4%. Draghi said that the Consumer Price Index was expected to increase in the mid-tern, however it was too early to “celebrate a victory” over the inflation.

The main currency pair will have more reasons for movements today. In the evening, the USA are going to report on the Labor Market numbers in February, which may be quite positive for the American currency.

RoboForex Analytical Department