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4 Apr 2014
Session Recap: When Draghi played 'il postino' and sent the euro down
FXStreet (San Francisco) - 'Il Postino' is a 1994 Italian film where the Chilean poet Pablo Neruda forms a relationship with a postman, a man in the street, who learned to love poetry. Today, ECB president Mario Draghi made a new step to make investors to learn how to love a bearish Euro.
Following the unchanged ECB rate decision, president Draghi provided the market with a dovish statement that made the Euro to fall apart against its majors competitors. Draghi opened the door to the use of "unconventional instruments within its mandate in order to cope effectively with risks of a too prolonged period of low inflation."
Then the EUR/USD, that initially reacted briefly positive, fell 110 pips from 1.3810 to 1.3695 where the pair found support. The rest is story, pair consolidated levels around 1.3715 ahead of Friday's NonFarm Payrolls report. Currently, EUR/USD is trading at 1.3718, down 0.35% on the day, having posted a daily high at 1.3810 and low at 1.3695.
The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is strongly bearish. RSI is at 49.00, up from the last hourly print at 34.57, with ADX at 18.52, down from its previous close at 25.04.
Main headlines in the American session
ECB keeps rates steady in April
US initial jobless claims 326k
US Trade Balance registered at $-42.3B in February
Draghi's press conference: Deflation threat in the Eurozone hasn't increased
Draghi's press conference: ECB had a 'rich' discussion on rates, QE
Draghi says “it’s not easy” designing a QE program
US Markit Services PMI climbed from previous 53.3 to 55.3 in March
US: ISM Non-Manufacturing PMI rises to 53.1 in March
Wall Street closes negative amid weak US data ahead nonfarm payrolls
Following the unchanged ECB rate decision, president Draghi provided the market with a dovish statement that made the Euro to fall apart against its majors competitors. Draghi opened the door to the use of "unconventional instruments within its mandate in order to cope effectively with risks of a too prolonged period of low inflation."
Then the EUR/USD, that initially reacted briefly positive, fell 110 pips from 1.3810 to 1.3695 where the pair found support. The rest is story, pair consolidated levels around 1.3715 ahead of Friday's NonFarm Payrolls report. Currently, EUR/USD is trading at 1.3718, down 0.35% on the day, having posted a daily high at 1.3810 and low at 1.3695.
The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is strongly bearish. RSI is at 49.00, up from the last hourly print at 34.57, with ADX at 18.52, down from its previous close at 25.04.
Main headlines in the American session
ECB keeps rates steady in April
US initial jobless claims 326k
US Trade Balance registered at $-42.3B in February
Draghi's press conference: Deflation threat in the Eurozone hasn't increased
Draghi's press conference: ECB had a 'rich' discussion on rates, QE
Draghi says “it’s not easy” designing a QE program
US Markit Services PMI climbed from previous 53.3 to 55.3 in March
US: ISM Non-Manufacturing PMI rises to 53.1 in March
Wall Street closes negative amid weak US data ahead nonfarm payrolls