05, August 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Wall Street managed to rise to fresh maxima on the background of Central Bank’s promises of the constant incentives and it is better than expected in comparison with economical data of the USA and other countries.

Next day after the politicians of the Federal Reserve said that they planned to save their purchases of assets in order to promote the rate of recovery, their colleagues from the European central Bank said that they would also direct their effort at strengthening of the growth.

The ECB president Mario Draghi said in his statement on the results of the bank’s meeting: “Our monetary policy will remain adaptive as long as it is necessary”.

The ECB left its key interest rate at the level of 0.5 per cent.
Bank of England also saved the key interest rate at the level of 0.5 per cent and saved purchases of bonds at 375 billion pound.

The recent economical data from the USA overcame the forecasts: Initial jobless applications data showed a minuscule 19,000 considering seasonal variations 326,000, the lowest level since January 2008. It is unexpectedly better as well as the ADP employment data on Wednesday.

This could serve as a positive sign for today’s job market in the USA. The economy added 185,000 jobs in July, according to the Bloomberg forecast, while the unemployment level may have possibly reduced to 7.5 per cent last month.

Separately, the manufacturing index of the Institute for Supply Management rose to 55.4 in July, its highest level in two years, while the final manufacturing purchasing managers index in the U.S. rose to 53.7 in July in the U.S., its highest level since March.