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.

Risk Warning / Disclaimer
The opinions of the author to market behavior do not constitute a solicitation to buy or sell any financial products, but are merely a personal opinion. When you go into the trade in leveraged financial products, you must be aware that a loss up to the amount of your deposit and in addition, can also be an obligation to arise. Make yourself familiar with the active trade or get independent advice before you invest your own money and use only invest money that you can get over the worst case.

BoJ keeps pumping money in the market

Asian stock markets are not receiving any accurate impulses for long-term movement in the market that is why indexes in general are moving in a different directions. Today we also can see multi-directional dynamics in the market. Worse than the others look index of continental China SSE, the Australian ASX, and also Japanese Nikkei.

Today finished meeting of the Central Bank of Japan within which the regulator decided to leave the current monetary policy without change, having raised, thus, an assessment of state of the economy for the first time in 2 months. Thus already can be heard offers from some board members to make a target rate of inflation more flexible, and not to go so strictly with rate on 2%%. The Japanese yen practically didn't react to these statements, having continued to bargain under level 100 against the American dollar, but the stock market started decreasing gradually. Meanwhile the hi-tech exporting companies which are most sensitive to a rate of national currency, today mainly grow, so Sony, Pioneer and Toshiba add about 1,2%%.

In meantime in the USA, stock market has finished yesterday’s trading session with increase in price of main indexes. Reasons for that were improvement of macroeconomic realities in the Eurozone and the USA, and also increase in demand for shares of auto makers and the hi-tech companies. The revised data on gross domestic product of the Eurozone confirmed 0,3%% growth of economy of the region in the 2nd quarter, having strengthened impression of the favorable data published the other day on the industry in Europe. In the USA, in turn, according to the report of the Beige book, the industry grew, and consumers began to spend more for entertainments, in particular, on tourism.

Vote of Committee of foreign affairs at the Senate in favor of limited military blow to Syria didn't scare investors. Let's note that the final decision will be made, most likely, in some days. Price for oil stabilized a bit and decreased in comparison to few days before, Brent is traded on a level of 113.37$ per barrel and Light is traded on a level of 106.63$ per barrel.

Today investors will be waiting for the conference of Mr. Dragi and the unemployment figures from the USA.

Risk Warning / Disclaimer
The opinions of the author to market behavior do not constitute a solicitation to buy or sell any financial products, but are merely a personal opinion. When you go into the trade in leveraged financial products, you must be aware that a loss up to the amount of your deposit and in addition, can also be an obligation to arise. Make yourself familiar with the active trade or get independent advice before you invest your own money and use only invest money that you can get over the worst case.

Services-PMI in the UK better than expected, GBP and AUD continues to rise

The UK continues to show economic strength and the Australian dollar, after better-than-expected GDP, and increase further.

British data confirm stable growth

The data released today to the Services PMI in the UK has far exceeded the expectations of the forecasts. After the index had risen in August by 3.0 points and for the seventh time in a row already, a decrease of 1.2 points was forecasted for thist month. The publication now showed a value of 60.5 points, an increase of 0.3 points versus last month. Overall, the index may thus have an increase of 9.0 points since last February.

The British economy is, based on the figures published in the past few weeks, in a stable growth and the GBP can expand its course against all counterparts. The GBP/USD rises to 0.41% at a current rate of 1.5623 and the EUR/GBP gains currently 0.43% at 0.8427. Against the JPY the British pound currently registered a growth of 0.40% at 155.59.

AUD is rising the third day in a row

The Australian dollar could continue its upward trend today on the third day in a row, after the today published Australian GDP at 2.6%, and was 0.1% higher than expected. As a consequence, the AUD has risen sharply in all pairs.

The AUD against the USD rose 1.10% currently at 0.9160 and the JPY currently 1.06% at 91.17. The pair EUR / AUD is currently at 1.00% at 1.4391 after.

Risk Warning / Disclaimer
The opinions of the author to market behavior do not constitute a solicitation to buy or sell any financial products, but are merely a personal opinion. When you go into the trade in leveraged financial products, you must be aware that a loss up to the amount of your deposit and in addition, can also be an obligation to arise. Make yourself familiar with the active trade or get independent advice before you invest your own money and use only invest money that you can get over the worst case.

Israeli missile shows the nervousness in the Forex Market

An Israeli missile has demonstrated today as the markets are nervous because of the impending conflict in Syria.

Syria as suspected target

The Russian news agency Ria Nowosti had reported, citing the Russian Defense Ministry, to launch two "ballistic objects" in the Mediterranean to the east. Since in this direction is the Syrian coast, was quickly assumed that this is the possible target of the missile and the conflict is gone in the hot phase. A short time later it was reported that the missile is gone down in the Mediterranean.

Yen and Swiss Franc gained abruptly

Immediately after the announcement of the launch of the missile, the JPY and CHF showed a reversal of the falling trend until then and could offset a large part of their current losses in a short time, while the emerging markets declined. This lasted as long as was explained by the Israeli side, they have to test a defense system launched two missiles, which came down as planned in the Mediterranean, without aim. Immediately after establishing the facts of, the market turned back to the previous direction and now has nearly recouped the losses.

Reactions in an escalation were considerably

Even if the event on based on a misunderstanding, or an unclear position based news, but one thing was clear. The crisis in the Middle East is being watched by the financial markets with great nervousness. Already the unsecured reporting of a potential attack against Syria sparked the escape from currencies with greater risk involved into "Safe Haven" currencies like the Japanese yen and the Swiss franc. Against this background, the mood in the White House and the U.S. Congress should be closely observed least because every possible indication of an imminent escalation might trigger a similar or stronger response.

Risk Warning / Disclaimer
The opinions of the author to market behavior do not constitute a solicitation to buy or sell any financial products, but are merely a personal opinion. When you go into the trade in leveraged financial products, you must be aware that a loss up to the amount of your deposit and in addition, can also be an obligation to arise. Make yourself familiar with the active trade or get independent advice before you invest your own money and use only invest money that you can get over the worst case.