Euro Dips as ECB Hints at Possible QE End
The euro is falling against the US dollar. The EUR/USD pair is trading at 1.2295 today, down 0.14%. Yesterday, the euro lost about 1% on the results of the ECB meeting. The European Central Bank left interest rates at the level of 0.00%, while ECB President Mario Draghi declined the previous emphasis on the continuation of the asset purchase program after the fall of this year. Another indirect hint at the completion of the stimulus from the ECB was the increase in forecasts for the GDP of the Eurozone this year. The ECB expects that the Eurozone GDP growth rate in 2018 will be 2.4%, and not 2.3%, as previously stated.
German industrial output fell unexpectedly for the second month in a row in January. Data from the Economy Ministry showed that industrial output fell by 0.1%, its second consecutive fall after a dip of 0.5% in December, missing the estimate of 0.6% growth. Both exports and imports had fallen unexpectedly by 0.5% in January.
Fears of an all-out global trade war are increasing after US President Trump signed an order imposing 25% tariffs on steel imports. EU is ready to respond US and policymakers have threatened to retaliate with tariffs on US goods.
Markets are focused on US jobs data. The US Labor Department will release the nonfarm payrolls report for February. It is expected, that the data will show jobs growth of 200.000, after adding 200.000 positions in January, while the unemployment rate is forecast to dip to a 17-year low of 4.0% from 4.1%.