The EUR/USD currency pair has been on a major decline during today’s session following dovish comments from Mario Draghi and the positive US jobless claims data. The release of the minutes of the European Central Bank‘s March meeting also indicated that the bank would be maintaining its forward guidance into the future.
The currency pair lost close to 20 points after the release of the US jobless claims data to extend its bearish trend much lower.
The currency pair has been largely bearish after comments from Mario Draghi, the ECB President, indicated that the bank was not keen on hiking interest rates any time soon despite the mounting pressure to raise rates. The ECB minutes published today also reiterated the position that the bank might retain its zero interest rate policy past the duration of its quantitative easing program.
The currency pair was further weakened by the stronger US dollar after the release of positive US jobless claims data, which was recorded at 234,000 versus the expected 250,000. The US jobless claims data released by the Department of Labor as of March 25 were also lower than the expected 2.030 million coming in at 2.028 million.
The currency pair’s future performance is likely to be affected by the release of the German trade balance data and the US change in non-farm payrolls for March, both scheduled for release tomorrow.
The EUR/USD was trading at 1.0649 as at 17:01 GMT having dropped from its opening high of 1.0684. The EUR/GBP was trading at 0.8536 having dropped from a high of 0.8566 earlier today.
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