ECB promised not to raise the rate at least until the end of this year. The euro responded to the outcome of the ECB meeting and the statement of the bank chairman Mario Draghi with a decrease but then quickly returned to its previous level. But why?
On Thursday, April 11, the euro stopped a two-week fall. The European currency rose by 0.21% to $ 72.63. The euro strengthened to all currencies of developing countries. In relation to the dollar, the euro is trading at around 1,128.
A day earlier the European Central Bank (ECB) held a meeting on monetary policy. The key interest rate remained zero. The bank left the rate on deposits at minus 0.4% per annum.
After the meeting, ECB President Mario Draghi said that the regulator will do everything possible to reduce inflation and to bring it closer to the target level. The rate will not change until the end of 2019. This is pretty good news for all the best forex robots that are using EUR as one of the trading currencies.
How did the euro react?
Immediately after the meeting, the European currency fell against the dollar to 1,123. By the end of Wednesday, the euro was able to fully recover the daily losses and return to the level of 1.128 against the dollar. The euro went up after the news about the postponement of Brexit.
The European Union approved the shift of the UK exit date to October 31. If an agreement between London and the EU is not reached before this date, the UK can withdraw from the European Union without a deal which will bring a huge uncertainty on the market.
Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo expected the common currency to hold on to its gains.
“It is not really a surprise that the euro is capable of reacting quickly to potentially positive factors, given the fundamentals surrounding the eurozone economy are showing signs of improvement” – commented Yamamoto.
Since the GBP currency is very unpredictable right now experts recommend to keep from trading on this currency. At the same time, there is a big perspective in trading EUR these days.
So if you still want to trade on GBP and EUR currencies you may like our best forex robot made exactly for trading on those currencies.