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EUR/USD Soars After ECB Monetary Announcement

March 10, 2016 by

Thursday was light on economic data from the United States, but it would have little importance anyway. The major event today was the monetary policy meeting of the European Central Bank, and it was well worth the attention, throwing markets in disarray. EUR/USD sank initially after the event but recovered afterwards, demonstrating a strong rally. What has happened is that the ECB did not disappoint with the amount of stimulus it added, but ECB President Mario Draghi said during the press-conference that he does not expect additional interest rate cuts in the future.

Initial jobless claims dropped to 259k last week from the previous week’s revised level of 277k. That is compared to the forecast number of 272k. (Event A on the chart.)

Treasury budget showed a deficit of $192.billion 6 in February after demonstrating a surplus of $55.2 billion in January. It was still smaller than the predicted shortage of $198.3 billion. (Event B on the chart.)

EUR/USD as of 2016-03-10

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