12, June 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Euro was traded higher after the typical Mario Draghi's conservative comments.

The Europe refused from active measures for monetary policy easing which the U.S. Federal Reserve and Bank of Japan chose to use. Draghi comments only confirmed the view that the ECB does not prepare anything for new radical policies to revive the economy. He supports the stress, to carry out reforms in the style of Germany and said that the ECB would not intervene only in order to maintain the solvency of these countries.

The euro has been steadily growing in the U.S. session, making a correction after falling earlier, which was provoked by the fact that S & P has upgraded the outlook for the U.S. credit rating.

According to Nowotny, a member of the Governing Council of the ECB, Eurozone is still a weak point for the global economy. Everything shows that it may be difficult for EUR to grow even more, relying solely on monetary policy expectations. This is especially true if the risky assets associated with the movement of capital could start to work against the common currency.