Euro makes its biggest weekly loss in 19 months after the ECB meeting

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Euro rose slightly in the European market on Friday against a basket of global currencies, recovering from a two-week low against the US dollar recorded earlier in the Asian market, the European currency is about to record the largest weekly loss in 19 months against the US currency, following The European Central Bank meeting in which he decided to extend and reduce the monetary stimulus program, and pointed out the difficulty of raising European interest rates before the middle of next year, and investors are looking later today, European consumer price data final reading in May .

Euro was up 0.2% at 08:04 GMT, trading at $ 1.1590, the opening high at $ 1.1565, and the highest at $ 1.1594, and the lowest at $ 1.1543 since May 30.

Euro ended yesterday’s trading down 1.9% against the US dollar, its biggest daily loss since the UK’s June 24, 2016 referendum, following the ECB meeting and Mario Draghi’s comments.

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Over the course of the week, the single currency has lost more than 1.5% against the greenback, the biggest weekly loss since November 2016, on the back of intensive selling after the ECB’s decisions.

After the European Central Bank’s monetary policy meeting on Thursday, the bank held steady interest rates unchanged from its record low of zero percent and decided to extend its European stimulus package for another three months from September to December. That the new value of the program during the extension period is 15 billion euros down from 30 billion euros.

The ECB said it was unlikely that the European interest rate would be raised before the summer of 2019, according to data on the state of the economy in the single European region. “We did not discuss when we will raise interest rates,” central bank governor Mario Draghi told a news conference after the bank meeting. .

Later in the day, investors were looking ahead to the release of inflation data in the euro area, with the final reading of consumer prices in Europe in May, and the preliminary reading was higher than expected, which revived the possibility of the ECB tightening monetary policy.

By 09:00 GMT, the final reading of the May consumer price index is expected to be the same as the preliminary reading, which rose 1.9%. Prices rose 1.2% in April, with food and fuel prices expected to drop by the same initial reading of 1.1%.

 

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