June 5: American session
Tatiana Norkina, an analyst at FBS
Today ECB stirred up markets refinancing rate down to 0.15 % (forecast - up to 0.10 %) from 0.25 %. At the same time deposit rates have gone into negative territory - 0.10 %. While Mario Draghi noted on the press conference that easing monetary policy is not yet complete. Immediately thereafter, the U.S. dollar index soared to around 81.06 , but the negative data on the labor market (the number of applications for unemployment benefits over the past week rose to 312 thousand from 304 thousand; forecast - 310 thousand) has returned to the recent support in 80.50. Thus, the index is in the red zone now, losing about 0.20 %. Stock markets, after a gap up, went down to the opening levels, but do not leave the negative zone, up until at 0.04 %.
In currency markets, the emergence of these news sharply increased volatility. Thus, the pair EUR/USD had fallen to 1.3500 figure , but at the moment is trying to update the current highs, testing the 1.3650 mark . GBP/USD has bounced from 1.6730 support and shows signs of recovery, punching resistance 1.6790. Currency pair USD/CHF has set a new high at 0.9036 , but immediately collapsed to 0.8920 . But USD/JPY is rather quietly corrected in 102.40.