Yesterday’s trading session was choppy and characterized by a lot of back and forth movement. Germany’s Business Climate came out with a value which was very close to the expected one but the US Consumer Confidence posted a better reading, strengthening the US Dollar.
According to our forex market analysis, although the Euro interest rate remained unchanged, the market had a major whipsaw after Mario Draghi’s comments made at the Press Conference that followed the Rate announcement.
The pair had another day characterized by a difficult trading environment and after climbing almost the entire session, it fell below the opening price of the day on the back of better than expected US Unemployment Claims numbers: actual 339K compared to the anticipated 352K.
Friday’s better than expected US Non Farm Employment Change numbers (actual 175K and expected 167K) managed to strengthen the greenback but the tremendous buyer pressure present in the market prevented the pair from dropping substantially.