Unexpected announcement from the European Central Bank

Last week, the European Central Bank announced that the interest rate at 0,25% would remain unchanged, triggering a Euro appreciation against the US dollar, reaching its strongest value since October 2011, slightly below 1,40.

Minutes later, president Mario Draghi in press conference warned that some measures could be taken in June in order to boost inflation and stimulate growth in the Eurozone.

This generated an immediate fall of the Euro against several major currencies. Particularly, the EUR/USD fell below 1,375 on Friday, its lowest value in more than a month, and the Pound touched its highest against the Euro since beginnings of 2013.

There are high expectations about what will happen this week with the inflation levels in the Eurozone and in the U.S, waiting for the announcement of the CPI for both zones on Thursday at 9:00 and 12:30 GMT respectively. Important reactions to the announcement of the U.S retail sales are also expected on Tuesday at 12:30 GMT, and the British unemployment report on Wednesday at 8:30 GMT.

EUR/USD

Last week, the pair hit its highest since October 2011, settling really near to 1,40. Towards the end of last week, el pair fell after Draghi’s announcements, to end at 1,375-1.377. The EUR/USD was stable at the beginning of the week, but several reactions are expected due to the announcements of this week.

GOLD

At the beginning of last week, the price of ounce traded at $1.315 approximately, and later fell until settling near $1.280, on Friday. Last Monday the price of the commodity opened high and still presents a bullish trend boosted by concerns in Ukraine and the low value of the dollar.

From EmpireOption