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The European Central Bank (ECB) conference took place today, September 13. The ECB didn’t change its policy. It was anticipated by investors. There had been worries about an influence of the lower economic forecasts on the EUR.
ECB updated the data concerned GDP growth for the next two years. According to the president of the ECB Mario Draghi’s report, gross domestic product will grow by 2.0% in 2018, 1.9% in 2019 and 1.7% in 2020. The small decrease in expected percent of GDP growth was accompanied by the unchanged forecasts of inflation for 2018, 2019 and 2020. The expected level of inflation for the next three years is 1.7%. Draghi said that it will be consistent. In his opinion, lower growth doesn't always lead to lower inflation.
However, the situation for currency came out better than it was expected.
Analyzing the outcome of the ECB meeting, the fact that Draghi didn’t speak about the emerging market risks brought some joy to EUR/USD buyers.
In addition, CPI of the US revealed today showed lower figures than it was expected (0.2% vs 0.3%). This pushed the USD down and made EUR/USD even more favorable for bulls. As we can see on the daily chart, the pair has been rising reaching the 100-day moving average at 1.1680. This is the resistance level for EUR/USD. If the pair closes above this level, the next resistance will be at 1.1740. The opposite situation will result in uncertainty of the next euro move.
On Wednesday, the evergreen buck declined because the Japanese yen kept to a two-month minimum due to the fact that market participants had the latest trade reports digested…
On Tuesday, the evergreen buck added versus its counterparts because market participants weighed the latest worsening in the tit-for-tat tariff conflict between China and America, while a weaker common currency also raised market sentiment…
On Monday, the evergreen buck declined versus its counterparts on worries of an escalation in the US-China trade conflict, while a stronger UK currency and euro also put pressure on market sentiment…
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…
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