Yesterday's landmark event- a comment from ECB President Draghi M. , in which he made it clear that the likelihood of measures to support the economy, hit the single currency. All recent rise in the euro against the U.S. dollar based on expectations that the ECB will not dare to take drastic measures to support the economy, but yesterday M. Draghi hinted that the European Central Bank, assessing the situation in the economy, already at the June meeting may decide on incentives. What could they be? First- you can expect a reduction in key interest rates at the level of 0.25%, as well as the European version of the asset repurchase. These measures will have an unambiguous pressure on the single currency. At the same time, the continuation of yesterday's speech by Fed J. Yellen in the U.S. Congress has demonstrated a desire Fed due to the weakness of the situation in the construction sector does not give clear signals about the prospects start raising interest rates. Against this backdrop, the dollar fell against the Australian dollar only, but rose against major currencies, and it looks like the main reason for this was a backlash euro and expectations of further local reduction.
Forecast of the day:
The EUR/USD fell heavily after a sharp rise in the first words Draghi. Due to the growth probability reduce the key interest rate is already at the June meeting. In the short term, we can expect a decrease in the pair to 1.3785, the intersection of which can lead to 1.3685. But it is probable bounce up to 1.3850. From this level a couple needs to sell. The Canadian dollar fell yesterday, the fall in risk appetite, the cause of which was a sharp drop in the euro. But if the pair manages to hold above the 1.0813 level, its growth is likely to 1.0900.
