Euro Stays Above 1.15 Level After ECB’s Rate Decision

Market Reviews

The euro rose after the ECB’s meeting. The euro/dollar pair is trading at 1.1550 level. The British pound remains the weakest major currency for the week, because of weaker than expected inflation data. The US dollar is recovering slightly, but still remains weak.

The ECB kept the key interest rate at 0.00%, and the deposit rate at the level of -0.4%. The quantitative easing program (QE) of the bank also remained unchanged.

As expected, the Bank of Japan left its monetary policy unchanged in July. The Bank of Japan left the interest rate at the level of -0.1% and retained the program of buying assets unchanged. At the same time, the Bank of Japan increased its assessment of the economy. GDP is likely to be +1.8% in the current fiscal year and +1.4% in the 2018 financial year.

Initial jobless claims in the US fell by 15k to 233k in the week ended July 15. Continuing claims increased by 28k to 1.98m in the week ended July 8.