The main currency pair is the key newsmaker of this Friday.
EURUSD is trying to recover on Friday afternoon, but investors aren’t ready to cover the pair’s yesterday decline. The current quote for the instrument is 1.1600.
Last night, EURUSD plummeted towards its two weeks low and the main reason was a stab in the back made by the European Central Bank. The European regulator left key aspects of its monetary policy unchanged during the June meeting, which was expected anyway. The main intrigue of this meeting was whether the ECB is ready to close the QE program in September, as was discussed earlier, or not.
It turned out that the program would continue longer than it was announced before, until December 2018. Moreover, the ECB decided to keep the benchmark rate unchanged at least until the next summer.
These two pieces of news taken together were enough to knock the Euro down. However, when one looks more closely, it can be seen that Mario Draghi didn’t say anything surprising; on several occasions earlier, he noticed that the European economy owed its growth and improvement to the QE program. It appears that investors were once again deceived by their own hopes and expectations.
EURUSD has chances for recovering, but the fundamental background (difference in monetary approaches of the ECB and the US Federal Reserve) will keep the European currency weak for a while.
Orgin: RoboForex
