EUR/USD (a 4-hour chart)
ECB President Mario Draghi said that the recent rise of the euro has an impact on inflation. He also added that the euro, even though it is not a primary target of the ECB, is important for growth and price stability. Mario Draghi also reiterated that the monetary policy of the ECB remains "soft." Draghi press conference followed the monthly meeting of the central bank, following which he left interest rates unchanged at 0.75% level. ECB may need to lower rates later in the year if the situation in the eurozone economy will change for the worse.
"Draghi hints that the ECB will be forced to provide additional stimulus if the euro becomes too strong, and it is negative for the single European currency", - Charles St-Arnaud, a currency strategist at Nomura Securities in New York, said.
Euro forced its positions in the last six months on the background weakness of financial stress in the euro zone debt crisis. However, its rapid growth raises concerns about the fact that a strong currency can hurt already vulnerable European economy, making eurozone exports less competitive abroad.
The euro/dollar finished the session in New York with 1% lowering at 1.3398 against 1.3525 late Wednesday.
RBA also warned that very low interest rates in the world are beginning to push up quotes on the stock markets and commodity prices.
However, the RBA thinks that the bank has room for further rate cuts in the case of the weakening economy.
The most important events for today are:
11:00 MSK. German Imports s.a. (MoM) (forecast - 1.3% m / m)
17:26 MSK. Eurozone: Economic Summit of EU
17:30 MSK. USA: The foreign trade balance for December (forecast - $ 46 billion)