FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet, noted the conditions surrounding the ECB, Greece and EUR/USD.
Key Quotes:
“EUR/USD traded lower in range for most of the first half of the day on Wednesday, with investors waiting for the ECB monthly economic meeting.”
“The Central Bank provided little news this month, leaving its economic policy on hold, and with the introductory statement of the press conference broadly unchanged from the previous one released in April. As for economic forecast, the ECB staff kept is growth and inflation forecasts largely unchanged, with a slight downward revision for 2017 GDP, from 2.1% to 2%.”
“Mario Draghi also emphasized the full QE implementation as long as it’s needed, whilst avoided to compromise on comments regarding Greece. When asked about the matter, he stressed that the ECB is working on keeping the country within the Eurozone, albeit remarking that a “strong commitment” has to be made.”
“The EUR/USD pair took its time to react after the release, as the final explosion in price was due to market’s attitude to bonds, rather than the currency itself. The commitment to keep on buying assets, drove German bunds sharply lower and yields soaring up to 89bps. Speculators forced out of bunds where the ones buying the EUR that rose up to 1.1284 against its American rival, a fresh 2-week high.”
(Market News Provided by FXstreet)