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    EUR/USD: Mario Draghi has slightly eased investors’ concerns on 17.02.2016

    On Monday Mario Draghi’s said before Euro Parliament in Brussels that ECB was ready to execute actions to support European economy; the bank was also prepared to adopt additional incentive measures. His words boosted investors’ sentiments and made them prepared to buy more risky assets.

    Although European economy is recovering, new problems at the beginning of this year, associated with sharp decline in Chinese and world stock markets, increase difficulties in the economy of Eurozone.

    Inflation decreases amid low prices of oil and commodities, while high rate of Euro causes problems for the exporters to Eurozone. ZEW index of current economic conditions released yesterday showed that fell in February lower than expected (52.3 against the forecast of 55.5 and 59.7 in January). This index assesses sentiments of the financial investors and general state of the German economy, which is driving force of the European economy. It proves that economic conditions in Germany are deteriorating.

    Yesterday the pair EUR/USD closed in the negative zone. Despite the rise in the pair at the Asian session today, the decline resumed during European session. The pair EUR/USD is traded at the level of 1.1160. Consolidation of the price below 1.1000 will trigger rapid decline in the pair EUR/USD.

    Due to increasing completion between the world manufactures and their fight for markets, Eurozone needs a cheaper Euro.

    Amid expectations of expansion in QE program in Eurozone, the pair EUR/USD will remain under pressure until the meeting of ECB in March. Downward trend in the pair can intensify if the pair consolidates below the level of 1.1000, which will be also supported by the difference in the policies of ECB and US Fed.

    Today’s news will include trade balance in Eurozone for January (12:00 GMT 2). Poor data might force ECB to adopt decision to expand QE program in Eurozone. At the meeting in March,

    US data will be released in the period of с 15:30 - 16:15 (GMT 2) and will include the minutes of FOMC meeting (21:00).


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