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7 Aug 2014
EUR/USD falls and bounces on Draghi, claims
FXStreet (Córdoba) - The EUR/USD plunged to fresh daily lows at the beginning of the New York session as better-than-expected US jobless claims data and ECB Draghi’s comments weighed on the pair.
Draghi started a speech saying the ECB’s decision to leave key interest rates unchanged was “consistent with our assessment of a moderate and uneven recovery.” He also said the ECB is strongly determined to safeguard firm anchoring of inflation expectations and reiterated the bank is ready to use unconventional measures if needed. Dovish comments in general, weaken the euro.
Meanwhile, on the other side of the Atlantic, jobless claims unexpectedly fell last week, helping the greenback.
As a result, the EUR/USD fell sharply to the 1.3350 zone, but quickly rebounded to status quo levels. At time of writing, the EUR/USD is trading at 1.3380, virtually unchanged on the day. Draghi will answer questions now, so choppy trading could not be ruled out.
Draghi started a speech saying the ECB’s decision to leave key interest rates unchanged was “consistent with our assessment of a moderate and uneven recovery.” He also said the ECB is strongly determined to safeguard firm anchoring of inflation expectations and reiterated the bank is ready to use unconventional measures if needed. Dovish comments in general, weaken the euro.
Meanwhile, on the other side of the Atlantic, jobless claims unexpectedly fell last week, helping the greenback.
As a result, the EUR/USD fell sharply to the 1.3350 zone, but quickly rebounded to status quo levels. At time of writing, the EUR/USD is trading at 1.3380, virtually unchanged on the day. Draghi will answer questions now, so choppy trading could not be ruled out.