Thursday, October 2, 2014

Market advantage of the ECB to rebound – Money.pl

Market advantage of the ECB to rebound – Money.pl

2014-10-02 17:31

About 13:45 we learned that it was no surprise that the ECB has decided not to change interest rates for the euro. No wonder, since they suffered a month ago. More interesting is that this time, in a speech of Mario Draghi Eurodollar did not fly down, on the contrary – some pick-up and working his way up from the area of ​​1.2620 – 30 to 1.2672 (about a quarter past 15:00).

Draghi said that for at least two years will run programs to purchase ABS and covered bonds, which will begin in the fourth quarter of the year. This information was not particularly surprising or sensitive (a month ago announced such a step), you can indeed learn, too, that the program will be incorporated in countries with a credit rating below BBB. ECB chief also admitted that the economic situation in the euro area worsened, however, announced the moderate recovery for the coming year. Once again, Draghi hinted that it is possible if you use non-conventional means by the ECB, which should be understood as the possibility of QE operations, but also, and this was nothing new. The market, therefore, used the words of the head of the ECB slight rebound.

It should be noted, however, that the correction is in fact modest, and Eurodollar away stands low and it would be rash to think that just now begin to clearly turn. Is not excluded, however some stabilization at current levels. Strong resistance is around 1.2830 and 1.2880, bringing the daily chart of the interval. First, short-term resistance we have now, if you run out of strength to break it, it will confirm this conjecture about the ephemeral present movements.



On the wave moves the main pair USD / PLN went down a little lower and currently ranks in the area of ​​3.2945. It is not certain, however, whether these levels – a relatively favorable for buyers dollar, as the last days – remain longer. Probably the market will need a few hours to calm down after the Draghi.

EUR / PLN 4.1765 we note, therefore, has not been any drastic changes. Basically, this pair moves at least a few days closely around 4.17 – 4.18.

The above text is an expression of personal views and opinions of the author and should not be construed as a recommendation to buy or sale of securities.

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