The ECB (European Central Bank) held interest rates today at 0.75%.
ECB President Mario Draghi mentioned last month that there was “a wide discussion” on cutting rates. His statement gave reason to believe that rates would be lowered soon. Economists and investors were waiting for the news today and it turned out positive for the Euro.
With rates staying the same, the EUR/USD skyrocketed today. The pair has moved around 230 pips so far and there is still time left in the trading day. It could possibly close at about the 1.325 level today.
The U.S. unemployment claims were about 10K higher than expected which could have significantly contributed to the Euro strength today against the U.S. Dollar.
The 2013 Euro Forecast
“The economic weakness in the euro area is expected to extend into 2013,” Mario Draghi said.
“Later in 2013, economic activity should gradually recover.”
Draghi’s statement may not have carried much enthusiasm but it did carry some optimism.
In the midst of a Euro crisis, Euro Forex investors surely found hope in these words of Draghi: “Later in 2013, economic activity should gradually recover.”
If you have any projections for the Euro in 2013, I’d love for you to share them below. Always feel welcome to connect & comment below!
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