Yesterday, at the beginning of Mario Draghi’s speech the single currency sharply increased. The head of the European Central Bank all the same recognized the improvements which have occurred in the economy of the Eurozone, and noted decline of risks. A little earlier, the euro was pleased, confirming the words of Draghi, the German Consumer Price Index and business indices that were in the green zone.
After that, the euro lost not only earned positions, but also fell against other currencies. More that, the European regulator doesn’t consider changes in monetary policy in the short term, in the opinion of Mario Draghi, there remains a need to stimulate the economy, and in case of a decline of indicators, the ECB is ready to resort to increasing the volume of the quantitative easing program.
Pretty “pigeon” speech of Mario Draghi not only kept the euro from growth, which could have a negative impact on the economic indicators in the future, but also had local pressure on the single currency.
But in the near future, the euro may reach higher values due to lower pressure from the US dollar. Today, output data of US GDP, which according to the history showed relatively weak results in the first quarter. Also, market participants are beginning to be skeptical about Donald Trump’s promises regarding the implementation of his promises of reform, which could put even more pressure on the US dollar.