On Wednesday the Fed announced that it was ready to take actions when needed in order to stimulate the growth of the U.S. economy. The markets, which are always awaiting money injections, responded with a downside movement.
On Thursday the European Central Bank made some announcements. The markets expected some positive news from The ECB President Mario Draghi who was supported by several European leaders. But Draghi did not meet investors’ expectations. His announcements about monetary policy are not of much importance, as they contain just empty declarations with no real actions to be taken.
European currencies dropped again, followed by the euro decline which touched 1.21 again and now is trading near its 2-year minimum. The pound sterling which recovered its positions also fell heavily, accompanied by the Swiss franc and the currencies linked to commodities, but the last ones dropped down to a lesser extent.
The US ISM services remained unchanged above 52 and 50 points which is still far from sector contraction.
As usual, we recommend waiting for the short term trends. Watch for data to stabilize before taking action on the market. Prices tend to show unpredictable movements in the first minutes after the employment figures release and there is no need to take unnecessary risks with a day ahead.
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