There is a growing suspicion and forecasts ECB resident Mario Draghi and that in the second half of the year due to the gradual recovery of the economy and discusses possible options. The measures that the European Central Bank may need to adopt in order to stimulate economic growth may reduce interest rates to a new round of long-term loans to banks. Most economists still believe that it is still too early for that and you should not expect to be at today's meeting to adopt some of these measures.The euro has continued during the morning to move near a four-month minimum versus the dollar. The European Central Bank kept interest rates at the current level of 0.75% as expected. Today is published purchasing managers index in the services sector in many European countries. PMI in Ireland had the lowest growth in March but still remained in growth. Service sector activity in Spain fell 21 months in a row. In both France and Germany as well as for the whole euro area recorded a fall if analysts are not expecting a change. Fall in service sector activity indicates that the euro zone economy is likely to be the sixth consecutive quarter of recession. Borrowing costs in Spain have achieved less growth in today's auction of three-and five-year bond that investors continue to carefully observe the course of resolving the debt crisis in the euro zone.
Very surprising turn in the EUR/USD pair, everything looked pretty obvious when the Euro started to break down but mu initial opinion was bullish and I stick to it till I see support level around 1.2770. Then entered in a one hour call and now I am collecting profit! Independently of my expectations to see something like this it was quite surprising and probably a lot of traders failed in this bear trap!
What a dodge it gave.... That is why I dont trade during conferences or speeches... Euro has risen above its today's pivot point level, and IF it closes 1.2820, then there is good news for it.... it wud enter bullish zone then....heading towards 1.29xx and 1.3000 would be its next targets...
ECB meeting kept the current monetary policy, but there was a statement in the Draghi speech that they won’t throw aside the possibility for further decrease of the interest rate if necessary and that is a bearish signal. I am not sure why but the market participants react only at the beginning to this fears and than they turned immediately very bullish. For me that is a sign that the EUR/USD is already in deeply oversold territory and the only way for it is to retrace again higher, which I am almost sure we will see tomorrow after the NFP release!
EUR/USD broke 1.2900 several minutes ago and now is trading at 1.2930 zone! The catalyst this time was the FED’s talk this evening, which rises doubt about continuation of the easing policy when the economy looks mostly recovered from the crisis. My opinion is that this moment is a turning point which will give some fresh forces in the EUR friendly investors and will help further appreciation of the EUR/USD pair in the next few weeks. The only risk here is the possibility of market shock on the stock markets, which could lead to reversal in the EUR positive sentiment. I will trade only call options in EUR/USD till then
If we are more correct bear trap. Because all the bears dropped there : ) For me tomorrow will be even bigger in terms of volatility and a lot of trading opportunities will arise. I wish all of you successful decisions!