Fundamental analysis for February 07, 2013
The euro fell against 13 of its counterparts after the ECB press conference, as Mario Draghi, the European Central bank president, said that the risk to the region’s growth remains on the “downside”. It was announced that the central bank had kept its benchmark rate at a record-low 0.75%.
The Bank of England announced today that it will retain 0.5% key interest rate. The bank also held its target for quantitative easing at 375 bln pounds. The pound strengthened for a second day after future bank of England Governor Merk Carney rejected speculation he would expand stimulus.
The yen weakened to 94 per dollar for the first time since May 2010. It could fail to find the level of 94.50, next target crossing bullish USD/JPY in the short term.
As for the other reports, expected weekly jobless requests, also at 8:30, the results in recent weeks had positively influenced the markets. Already in Asia on Friday morning, the foundations of monetary policy announcement from the Reserve Bank of Australia could generate a new low of the Aussie, which presents very bearish trend in the near term. Also expected, the trade balance in China. The Chinese economy depends much on the Western world, so a good trade balance of the Asian giant will give a new breath to the world at large.
The material has been provided by Instaforex Company – http://www.instaforex.com/