US Session – Euro surges after ECB Chief Draghi’s press conference
April 4, 2013 8:40 pm
Central bank meetings around the world were in the spotlight on Thursday. The European Central Bank and the Bank of England kept monetary policy unchanged while the Bank of Japan dared to differ and adopted more monetary policy easing.
The dollar surged against the yen immediately after the BOJ announced it will double the size of its monetary base in two years by purchasing more bonds and stocks, all in an effort to fight deflation and stimulate the economy by aiming for a n inflation rate of 2 percent.
USDJPY extended gains in the US session to reach a high of 96.39 yen, gaining a whopping 3.3 percent on the day, and not far from a 3-1/2 year high of 96.69 reached on March 12.
EURJPY advanced higher to 124.56 yen, up 4 percent on the day.
Euro also surged against the dollar to gain back earlier losses and hit a high of $1.2948. There was some volatility during European Central Bank President Mario Draghi’s press conference, with EURUSD dipping briefly to a low of $1.2745 but turned higher on a more dovish-than-expected Draghi speech.
Sterling was lifted after the Bank of England left the size of its bond-buying program unchanged and held its key lending rate at a record low 0.5 percent as expected. GBPUSD rose to a high of $1.5244 from an earlier low of $1.5032.
Central bank meetings around the world were in the spotlight on Thursday. The European Central Bank and the Bank of England kept monetary policy unchanged while the Bank of Japan dared to differ and adopted more monetary policy easing.
The dollar surged against the yen immediately after the BOJ announced it will double the size of its monetary base in two years by purchasing more bonds and stocks, all in an effort to fight deflation and stimulate the economy by aiming for a n inflation rate of 2 percent.
USDJPY extended gains in the US session to reach a high of 96.39 yen, gaining a whopping 3.3 percent on the day, and not far from a 3-1/2 year high of 96.69 reached on March 12.
EURJPY advanced higher to 124.56 yen, up 4 percent on the day.
Euro also surged against the dollar to gain back earlier losses and hit a high of $1.2948. There was some volatility during European Central Bank President Mario Draghi’s press conference, with EURUSD dipping briefly to a low of $1.2745 but turned higher on a more dovish-than-expected Draghi speech.
Sterling was lifted after the Bank of England left the size of its bond-buying program unchanged and held its key lending rate at a record low 0.5 percent as expected. GBPUSD rose to a high of $1.5244 from an earlier low of $1.5032.
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