• American focus : the euro fell on Draghi comments

Market news

9 January 2014

American focus : the euro fell on Draghi comments

Euro fell against the U.S. dollar on a background of ECB President Mario Draghi . Earlier it was reported that the ECB kept its benchmark interest rate at a record low of 0.25%. Deposit rate was also kept at zero.

Head of the European Central Bank Mario Draghi has once again confirmed the promise controller to keep rates at the minimum values ​​in the near future . " The Governing Council strongly emphasizes that he intends to keep stimulating monetary policy as long as it is necessary " - Draghi said in a speech at a press conference in Frankfurt.

According to him , inflation in the eurozone will remain low for at least two years. ECB President believes that it is too early to talk about the victory over the crisis as " the eurozone 's economic recovery is weak, moderate and unstable ." Expansionary policy will lead to a revitalization of domestic demand in the euro zone in 2014-2015 . Believes Draghi .

Earlier, the euro rose against the dollar significantly after the data for the euro area , which showed that economic sentiment in the euro zone rose to more than two-year high in December , which is a sign that the economic recovery is starting to gain momentum after a long decline .

Data published by the European Commission , supported by a growing list of statistics, which indicates improvement in business confidence and spending .

The report showed that the index of sentiment in the economy rose in December to a level of 100 points, compared to 98.4 points in November , while reaching its highest level since July 2011 .

Rise was broad-based and in all sectors . It is noteworthy that the trust between providers of the service sector was in the "plus" for the first time since August 2011 , while industrial companies were the second level of confidence.

Furthermore, it became known that the index of German economic sentiment was one of the most positive in December - at the level of 106.0 points. In Spain , the figure rose to 100.0 , while Italy he rose to 96.2 from November's 93.9 .

Pound traded slightly higher against the dollar on the fact that the Bank of England left unchanged interest rate and bond-buying program to support the UK economy. The Bank of England left its key interest rate unchanged at 0.5% and the size of its bond purchase program untouched for 375 billion pounds .

As usual, when there is no change in policy , Monetary Committee is not making a statement explaining its decision . Minutes of committee meetings will be published on January 22.

Economists expect GDP growth in 2014 is 2.5% , the highest since 2007. But despite this growth , some economists expect the central bank to start raising the UK refuses to borrowing costs in the near future .

Bank of England officials headed by Mark Carney pledged to keep its benchmark interest rate at a record low level in order to support the growing recovery in Britain as long as inflation remains subdued .

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