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22 Apr 2016
Dollar's u-turn on ECB as the main driver on Thursday - FXStreet
Valeria Bednarik, chief analyst at FXStreet explained the main market focus and driver this Thursday, was the ECB and its economic policy meeting, and as expected, the European Central Bank did not announce any new measures, centering on the implementation of the batch of policies announced last month.
Key Quotes:
"The American dollar turned south ahead of the event, and the EUR/USD pair spiked during the press conference up to 1.1398, in where ECB's President, Mario Draghi, reckoned that the downward risk towards inflation persist, and that it may fall back into negative territory during the upcoming months, before picking up by the end of the year. The generally dovish tone of the press conference, and the failure of the common currency to regain the critical 1.1400 level, finally resulted in an u-turn of the greenback, which soared across the board as Draghi kept the door open for additional easing in the future.
EUR saw its gains rapidly eroded after market's attention shifted towards the upcoming FED meeting next week, as somehow, market expects a hawkish statement, pre-announcing a June rate hike. The EUR/USD pair ended back where it started, below the 1.1300 level and the 23.6% retracement of the latest daily bullish run at 1.1315. The long upper wick of the daily candle suggests that bulls are in retreat mode, implying the pair can fall further during the upcoming days."
Key Quotes:
"The American dollar turned south ahead of the event, and the EUR/USD pair spiked during the press conference up to 1.1398, in where ECB's President, Mario Draghi, reckoned that the downward risk towards inflation persist, and that it may fall back into negative territory during the upcoming months, before picking up by the end of the year. The generally dovish tone of the press conference, and the failure of the common currency to regain the critical 1.1400 level, finally resulted in an u-turn of the greenback, which soared across the board as Draghi kept the door open for additional easing in the future.
EUR saw its gains rapidly eroded after market's attention shifted towards the upcoming FED meeting next week, as somehow, market expects a hawkish statement, pre-announcing a June rate hike. The EUR/USD pair ended back where it started, below the 1.1300 level and the 23.6% retracement of the latest daily bullish run at 1.1315. The long upper wick of the daily candle suggests that bulls are in retreat mode, implying the pair can fall further during the upcoming days."