EURUSD dropped to its 2-year lows; the asset is looking really weak.
The major currency pair updated its lows yesterday. Right now, it is trying really hard to reach stability. The current quote for the instrument is 1.0806.
The European Central bank had a meeting yesterday and decided to change absolutely nothing. The benchmark interest rate remained at 0.0%, the deposit facility rate and the marginal lending rate – at -0.5% and 0.25% respectively. The regulator once again said that the net asset purchases should be concluded in the third quarter. The Euro responded to this news by declining.
In fact, yesterday’s comments from the ECB were absolutely the same as in March. The regulator said that interest rates would be raised sometime after the QE programme completion, but announced no exact dates. Since the QE is not supposed to be over sooner than July, market players should wait for a rate hike in the nearest future.
Unlike other global Central Banks, which prefer to fight inflation using monetary tools, the ECB is looking quite far behind. And it doesn’t make the Euro enthusiasts happy.
The US reported on the Retail Sales for March yesterday. The indicator gained 0.5% m/m, a bit shy of the expected reading of 0.6% m/m, after adding 0.8% m/m in February. The Core Retail Sales expanded by 1.1% m/m after gaining 0.6% m/m in the previous month and against the expected reading of 1.0% m/m.
The numbers are pretty good, especially amid the global price surge in food and non-food products. The statistics supported the “greenback”.
Today is Good Friday in the Catholic countries, so the market volatility is expected to be lower than usual.
Source: Roboforex
