Despite the current weak macroeconomic statistics the euro area and a clear threat of deflation in the region, the European Central Bank on Thursday left its monetary policy unchanged. ECB President Mario Draghi in a subsequent speech for the first time in more than two years did not announce new stimulus measures. Also, there were no signals that preparing any action in this regard. The euro rose to solve ad, and then became to decline sharply during the speech of Mario Draghi. European stocks and government bonds also fell after a speech of M.Dragi.
Data released earlier in the week by Eurostat, also pointed to a slowdown in household and government spending. Moderate growth in euro area GDP in the 2nd quarter was 0.3% (+ 1.6% yoy). The growth rate of the Eurozone’s GDP in the 1st quarter compared to the previous quarter was revised to 0.5% from 0.6%. Thus, the growth of the euro area economy as a whole in the first half of the year was weaker than previously reported. On the European Commission's findings were published last week that pointed to loss of confidence in the euro-zone companies and households in August. The Central Bank can not also achieve the target inflation rate for more than three years.
With the opening of today's trading day and during the European session, the dollar is growing on the foreign exchange market against most currencies. Decreases in the price of gold and oil, despite the publication of data yesterday from the US Department of Energy, testified to a strong decline in US oil inventories (-14.513 million barrels).
Also pay attention to the speech today at 11:45 (GMT) President of the Federal Reserve Bank of Boston Eric Rosengren, who had previously spoken out in favor of maintaining a soft monetary policy and then changed their views on the opposite. I wonder what he would say after the negative US economic indicators received earlier in the week, and after yesterday's ECB meeting.