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Interest Rate Decision’s Influence on EUR/USD

January 10, 2008 (Last updated on September 12, 2018) by

Today the European Central Bank decided to leave the interest rate unchanged at 4.00%, as it was expected by the markets. But the EUR/USD went up after the decision became known — the currency pair gained more than 70 pips. What has caused that? Along with the rate decision ECB announced another $20 billion intervention to the banks to add more dollar liquidity. That greatly cut the dollar’s position on Forex, especially against European currency.

Positive to the U.S. dollar was the weekly report on the initial jobless claims — last week they dropped from 337k to 322k, while a gain up to 340k has been anticipated by the market analysts.

Wholesale inventories (business) rose up by 0.6% compared with the October’s 0% unchanged value. Economic strategists forecasted only 0.4%, so this is a good news for dollar bulls.

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