The most important event during today’s session was a conference of the President of the European Central Bank – Mario Draghiego.Konferencja held, as always, after earlier announcement a decision on interest rates, which remained unchanged (as expected by the market) of 0.05 per cent. in the case of the reference rate.
And so the ECB chief said the program of quantitative easing QE is proceeding according to plan and will continue to the intended date of September 2016. or approach the level of inflation to the target, and monetary policy remains akomodatywna. Mario Draghi also mentioned declines in the price of oil, which is considered the factor supporting consumer demand in the euro area. He also added that the European Central Bank is able to use additional tools, if inflation prospects deteriorate.
It is also worth noting that the ECB decided to increase emergency funding (ELA) for Greece, thanks to the emergence of conditions to enable such a decision. The ECB scenario of Greece remain in the euro zone and the role of the central bank is not to decide on this issue – said Draghi. ELA program has been increased by 900 million euros, or much less, than were the expectations of Greece.
Before, during and after the conference, the Euro depreciated against the US dollar, which grows from strength to strength on the wave of increased expectations regarding the timing of the first increases in interest rates in the US. According to the latest survey conducted by the Wall Street Journal feet are to be raised as early as September. As much as 82 percent. Economists surveyed were in favor of such a scenario. Only 15 percent. He believes that monetary tightening will take place in December. The remaining respondents pointed to the further months. Today also met a number of weekly applications for unemployment benefits. They submitted them to the United States 281 thousand. compared to the expected 285 thousand. In turn, the previous reading was revised from 297 thousand. up to 296 thousand.
Tomorrow awaits us a variety of data on our domestic economy. We are talking about reading industrial and construction-assembly production, retail sales results and the publication of the changing dynamics of production prices. In turn, the US awaits us consumer inflation reading and data from the real estate market (permits to build homes, started the construction of houses).
About 17:00 the dollar should pay 4.11 per pound 5.87 for the franc 3.94 and 3.76 per dollar depreciation.
The above text is an expression of personal views and opinions of the author and should not be treated as a recommendation to buy or sell securities.
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