ECB meeting became a key event of the day. According to the expectations of most of the experts interviewed by Bloomberg, ECB left key interest rates on the same levels.
ECB didn’t change its monetary policy despite the improvement of deflation expectations in Eurozone.
Let us remind that new data about consumer inflation was published just a few days ago: it slowed down to 0.5% in March, which was the minimal result since November 2009.
Click on the picture to see full-size
Nevertheless, Mario Draghi said that ECB would not exclude a possibility of further measures aimed to soften the monetary policy. Mr. Draghi confirmed that key rates would remain on the current or lower levels for the long period of time.
The “expensiveness” of the European currency should be noted as well, as it has a negative impact on profits of European companies.
March value of Services PMI in Germany was revised from 54 to 53.
Click on the picture to see full-size
Euro Area Services PMI was also revised downwards from 52.4 to 52.2 points.
Click on the picture to see full-size
Weak inflation data topped with the deterioration in the business environment in Eurozone will increase traders’ fears related to the possibility of monetary policy softening by ECB, which can lead to the decrease of EURUSD rate.
At the moment, EURUSD dropped by 0.4% and is traded near 1.3710.
Pair looks locally oversold from the technical point of view. 1.37050 is a support level. If bulls are able to secure their positions at this level, then a technical rollback can take place, and a pair can get to 1.37300, 1.37500 and 1.37850.
If 1.37050 is successfully breached, then EURUSD can fall to 1.36800 and 1.36450.
Click on the picture to see full-size - See more at: https://www.mayzus.com/economical-news/euros-rate-is-going-down-after-the-press-conference-with-the-president-of-the-ecb-mario-draghi.html#sthash.05abIXMy.dpuf
ECB didn’t change its monetary policy despite the improvement of deflation expectations in Eurozone.
Let us remind that new data about consumer inflation was published just a few days ago: it slowed down to 0.5% in March, which was the minimal result since November 2009.
Click on the picture to see full-size
Nevertheless, Mario Draghi said that ECB would not exclude a possibility of further measures aimed to soften the monetary policy. Mr. Draghi confirmed that key rates would remain on the current or lower levels for the long period of time.
The “expensiveness” of the European currency should be noted as well, as it has a negative impact on profits of European companies.
March value of Services PMI in Germany was revised from 54 to 53.
Click on the picture to see full-size
Euro Area Services PMI was also revised downwards from 52.4 to 52.2 points.
Click on the picture to see full-size
Weak inflation data topped with the deterioration in the business environment in Eurozone will increase traders’ fears related to the possibility of monetary policy softening by ECB, which can lead to the decrease of EURUSD rate.
At the moment, EURUSD dropped by 0.4% and is traded near 1.3710.
Pair looks locally oversold from the technical point of view. 1.37050 is a support level. If bulls are able to secure their positions at this level, then a technical rollback can take place, and a pair can get to 1.37300, 1.37500 and 1.37850.
If 1.37050 is successfully breached, then EURUSD can fall to 1.36800 and 1.36450.
Click on the picture to see full-size - See more at: https://www.mayzus.com/economical-news/euros-rate-is-going-down-after-the-press-conference-with-the-president-of-the-ecb-mario-draghi.html#sthash.05abIXMy.dpuf
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