European Session – Sterling gains after BOE announces no rate change, no QE
April 4, 2013 1:07 pm
Central bank policy meetings dominated the news on Thursday. The day began with the Bank of Japan expanding stimulus measures and the Bank of England and European Central Bank keeping rates and policy steady.
The euro briefly popped higher against the dollar after the ECB announced it left the key interest rates unchanged at 0.75 percent. This was broadly expected by the markets, what is more important is the press conference by ECB President Mario Draghi due at 1230GMT. Markets will pay close attention to Draghi’s comments on his outlook for the euro zone economy as well as hints on further rate cuts.
EURUSD hit a high of $1.2823 after the ECB rate announcement, moving off a session low of $1.2782.
Sterling jumped higher after the BOE announced its decision to keep rates on hold at 0.50 percent and did not expand quantitative easing, currently at 375 billion pounds. The BOE did not make a statement after the announcement.
GBPUSD rose to a session high of $1.5120, up from an earlier low of $1.5032.
Yen consolidated losses made after the Bank of Japan surpassed expectations and announced it will adopt bolder monetary easing measures.
USDJPY surged 1.7 percent to 94.66 yen during the Asian session and extended higher in Europe to 95.66 yen. EURJPY also extended gains to a European session high of 122.68, gaining almost 3 percent on the day.
Central bank policy meetings dominated the news on Thursday. The day began with the Bank of Japan expanding stimulus measures and the Bank of England and European Central Bank keeping rates and policy steady.
The euro briefly popped higher against the dollar after the ECB announced it left the key interest rates unchanged at 0.75 percent. This was broadly expected by the markets, what is more important is the press conference by ECB President Mario Draghi due at 1230GMT. Markets will pay close attention to Draghi’s comments on his outlook for the euro zone economy as well as hints on further rate cuts.
EURUSD hit a high of $1.2823 after the ECB rate announcement, moving off a session low of $1.2782.
Sterling jumped higher after the BOE announced its decision to keep rates on hold at 0.50 percent and did not expand quantitative easing, currently at 375 billion pounds. The BOE did not make a statement after the announcement.
GBPUSD rose to a session high of $1.5120, up from an earlier low of $1.5032.
Yen consolidated losses made after the Bank of Japan surpassed expectations and announced it will adopt bolder monetary easing measures.
USDJPY surged 1.7 percent to 94.66 yen during the Asian session and extended higher in Europe to 95.66 yen. EURJPY also extended gains to a European session high of 122.68, gaining almost 3 percent on the day.
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