Draghi's (non) statement sends the euro down, USD can´t be stopped
From the press conference with ECB President Mario important clues about the future course of monetary policy of the ECB were expected. Real conclusions can not be drawn from his words.
No clear statements
The most important thing from Draghi's words can be taken is, that he has said anything specific or set on a stand and left, with his explanations, all options open for further action by the ECB. As it was, he mentioned that a part of the Executive Board would be confirm to a further reduction in interest rates, on the other hand, another won´t do as well. Regarding the economic recovery Draghi said that this takes place and stressed simultaneously downside risks to the economic development in the euro-area. Overall, it can be said that the ECB is not ready for a long-term assessment of the economic development of the moment, or this assessment does not want to express to not unsettle the markets.
If the investors should not be confused by today's press conference, this goal was not achieved clear. The euro fell after the press conference against almost all major counterparts. Could the pair EUR/USD in European trade still exceed the mark of 1.3200, it is now listed just before the mark to 1.3100 at 1.3119, and a decline of 0.66%, the lowest level in seven weeks. The GBP against the EUR loses currently 0.44% and the EUR/GBP is at 0.8414. Against the Japanese yen, the euro lost its morning gains again and the EUR/JPY shows a current deficit of 0.32% at 131.36. Only against the Swiss franc, the euro was up and the pair EUR/CHF shows a current gain of 0.32% at 1.2391 on.
U.S. data give a further boost to the USD
The published today, mainly concerned the labor market, economic data from the U.S. have been significantly positive, and were able to support the strong value of the U.S. dollar to continue. In the non-farm jobs, the predicted number of 180K wasn´t achieved with 176K but created a significant number of jobs. The initial and continuing jobless claims totaled 323K and 2,951K and were 9,000 and 43,000 below the expected values. Even the non-farm productivity rose by 2.3%, with 1.5% expected.
Especially the positive data from the labor market supports the conjecture of analysts and investors that the Fed at its meeting on 17 and 18 September could reduce the program for the purchase of bonds in the amount of 85 billion dollars a month.
Supported by the data the USD was up in almost all pairs, beside the already mentioned above increase to EUR, against the GBP at current 0.21% to 1.5590. The growth to the JPY is currently 0.39% at 100.13, bringing the mark of 100.00 for the first time since 25 July been exceeded. Against the AUD the USD increases by currently 0.44% at 0.9133 and the to NZD 0.12% at 0.7895. The largest increase of the USD was against the CHF. The USD/CHF rises by 0.94% currently at 0.9445.
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