09, June 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

As it was expected - the ECB started the monetary - credit policy easing having lowered the interest rate by 0.15% and introducing the negative deposit rate for commercial banks. The monetary regulator first went to such drastic action as low inflation, leaving the other no choice.

During the press conference after the meeting, ECB President Mario Draghi said that the key ECB interest rates would remain at current levels for an extended time period. These measures will contribute to higher inflation 2%. He also left the door open for the new mitigation measures, stating that "if necessary, we will promptly implement further easing."

The initial jobless claims grew by 8 thousand to 312 thousand, while they were expected to grow only up to 310 thousand. The data for the previous week was revised to the downside from 300 thousand to 304 thousand average number applications over the past four weeks fell by 2.25 thousand - from 312.50 to 310.25 thousand. This is the lowest index value since June 2007.

There were announced the Bank of England meeting results – we did not get any surprises, the monetary policy as expected remained unchanged. In the light of this the GBP/USD followed the euro/dollar.

Nikkei 225 futures were under the pressure on long positions profit that cheered "bears" for the going short.