10, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The U.S. dollar fell against most major currencies as traders had to fix profits after the growth of the last week caused by the strong economic data of the USA.

The U.S. currency fell against the Euro, the Japanese Yen and the British Pound.
But market observers say that the dollar is still in an uptrend, and released on Friday data on the number of jobs outside agricultural industry in the United States, which were better than it had been forecasted, indicate that the U.S. economic recovery is gaining power. In turn, this will lead to the fact that the U.S. Federal Reserve will begin to phase out its monthly program of bond purchases at 85 billion dollars by the end of this year.

European Central Bank President Mario Draghi's speech before the Committee on Economic and Monetary Policy European Parliament in Brussels on Monday focused on the functions of the Committee for European Systemic Risk, which he heads and which deals with supervision of the risks to the financial system of the Euro zone.

Draghi emphasized the importance of oversight of financial stability in the EU and made it clear that the ECB is ready to use its powers more often.

The President of the European Central Bank also underlined that the process of fiscal consolidation was inevitable, and that Portugal, where the economic situation remains "tense", should make greater efforts to stimulate its economic growth. He also praised Spain for efforts to reduce amount of debt of the private sector.