Forex Trading: 07 March 2014
The European Central Bank left its benchmark interest rate unchanged at a record low of 0.25% amid signs of a pickup in inflation and output, undoubtedly very helpful for officials in the current climate.
With good news on the other side of the Atlantic as well, forex
investors felt confident enough for a risk-on session, pushing the euro 125 points up against the dollar to $1.3860.
Forex Trading: 06 March 2014
Ahead of today's European Central Bank meeting, the common currency ended pretty flat at $1.3735, ignoring a report which showed European services growing by more than expected.
Despite all of the reassurances from Mario Draghi, the fact of the matter is that the Eurozone remains behind the US in terms of growth, so even a risk-on day can invite caution.
Forex Trading: 05 March 2014
A sharp rally back for the European equities had a minimal impact on the shared currency versus the US dollar, which finished rather flat around $1.3740.
Although the threat of an invasion has been downplayed, currency traders don't see an easy solution being reached any time soon and so the safer bet was to wait on the sidelines.
Forex Trading: 04 March 2014
The chances of an ECB rate cut later this week seem to be fading as improved inflation data and investor confidence managed to buy Mario Draghi some extra room to manoeuvre.
However, the ECB President acknowledged the downside risks still lurking within the European economy and emphasized the need to remain alert.
As a result, the EUR/USD pair declined by 34 points to $1.3734, although the move was exacerbated by traders turning to the safety of the US dollar.
Forex Trading: 03 March 2014
It was all about Eurozone inflation figures on Friday, as stronger than projected CPI numbers triggered speculation that the ECB is off the hook for now.
The central bank may well decide to keep its powder dry at Thursday's interest rate meeting, despite increasing speculation that it could consider additional QE.
As a consequence, the euro rallied by 91 points against the US dollar, finishing at a record $1.3802.
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By Jonathan Sudaria, 7 March 2014