EURUSD remains “in the black” so far. Overview for 25.10.2018

The major currency pair reached stability and even try to recover.  

On Thursday evening, EURUSD in trading upwards on the news. The current quote for the instrument is 1.1416.

Today’s meeting of the European Central Bank was rather neutral without any surprising results. The benchmark Interest Rate remained at 0%, the same as the Deposit Facility Rate at -0.4%. European policymakers once again said that key interest rates would remain at the current levels at least through the summer of 2019 and the net purchases under the QE program would last until the end of December 2018. The monthly volume of the QE program right now is 15B EUR.

During the press conference, the ECB Governor Mario Draghi said that macroeconomic statistics were not as good as expected, but still quite positive and matched market expectations and outlook. According to Draghi, the inflation might circle around current levels for the next several months. However, the target remained the same, 2%.

Another “hot potato” that Draghi mentioned in his speech was the conflict between Italy and the European Commission. He told the media that the parties would have to come to an agreement because cheap Italian bonds might really damage the Italian banking system.

Investors are still analyzing the numbers that came from the USA. The Durable Goods Orders added 0.8% m/m in September after adding 4.4% m/m in the previous month and against the expected decline by 1.3% m/m. The weekly Unemployment Claims report showed 215K, which was very close to market expectations of 214K.