The Euro received support from the ECB
The Euro continued to receive support from the ECB during the European trading session. To crosses of the Euro is in high demand. EUR/USD pair increased to the level of 1,1838.
On Wednesday, representatives of the ECB through the media gave traders and investors food for thought on the topic of cutting the QE program. I am sure that the chief economist of the European regulator’s Peter Praet (Peter Praet) is said about QE before the fed policy meeting, which will take place June 13. I believe that the ECB now estimates the reaction of the markets, the dynamics of the Euro against the dollar and other currencies (including range of motion), as well as the involvement of large banks.
In the news and financial portals about 30% of the articles about the upcoming ECB meeting next week, June 14. The event will be exciting, as market participants expect to hear specific deadlines for scaling down QE, but ECB President Mario Draghi the backdrop of recent events in Italy and Spain may fail to meet their expectations. And during the press conference, the oscillation amplitude pairs sometimes up to 150 points.
Dollar against major currencies traded mixed. In the last hour of unidirectional pairs pound/dollar and Euro/dollar went in different directions.
The Euro rose and the pound fell. On the market there were hearings about the possible resignation of chief negotiator for Brexit David Davis, who may not agree with the Prime Minister of great Britain Teresa may on a number of issues.
The Euro was supported through the basic cross-pair EUR/GBP. If the pound/dollar will take down other currencies, the downward correction will affect EUR/USD.
Published by the European statistics:
The revised value of GDP index in the Eurozone for the first quarter of 2018 was 0.4% QoQ and 2.5% yoy (consensus was at 0.4% QoQ and 2.5% yoy, a preliminary value of 0.4% QoQ, +2.5% y/y).