Mar. 6: American session
Tatiana Norkina, an analyst at FBS
ECB President Mario Draghi shook the currency market today. During the press conference, he said that monetary policy will remain the same and further easing is not expected. Moreover, Draghi raised its forecast for economic growth in the Eurozone. This led to a sharp European currency purchases and strong increase of the EUR/USD. Pair broke important 1.3750 level and rebounded to around 1.3845.
The growth of the U.S. stock market should be noted as well. DJIA creates new highs, recovering at 0.40 % already and the S&P500 - at 0.35%, while the U.S. dollar index is down to 0.40 %. This contributes to the fall of the pair USD/CHF, which is currently trading at 0.8820, down from the critical level of 0.8890.
USD/CAD collapsed as well, its quotes are near 1.0990. Here, the positive data from the real estate market poured oil on the flame. Number of building permits rose to 8.5 % vs. analysts forecast of 1.0 % last month.
To sum up, we must pay attention to the explosive growth of the pair USD/JPY, which finally broke the long-standing barrier 102.60, soaring in early U.S. session to around 103.15.