Euro managed to hit the elusive $1.25 mark today as the dollar continues its perplexing performance in the market. The European Central bank president Mario Draghi’s statement of a new found confidence on the Eurozone’s inflation.
On the other hand, the oil prices also managed to capitalize on the massive dollar price deficiency in the market as it also hits a massive $71 per barrel price; the oil prices have managed to pair the price from over three years ago. The oil output cuts from OPEC and non-OPEC managed to propel the price upwards and analysts are expecting more from the next months.
The European currency managed to hit a 3 year high today despite having a problematic weak; the currency managed to hit the $1.25, the last time it managed to climb this level is last December of 2014. More specifically, the price managed to fluctuate at exactly 2:00 p.m. London time; this is still great news despite having lackluster ECB meeting outcome.
All-in-all, the euro managed to hit a total of 0.7% increase to $1.2498 against the dollar. ECB’s Draghi mentioned that the previous economic data were “solid and broad”; he also hinted that with great data, the inflation may rise in the middle of the year from its current levels.
Jane Foley of Rabobank mentioned that "Draghi failed to surprise the market," and "The economic data is too strong," Most analysts also pointed that despite what Draghi said, the market and the whole Eurozone can still expect a tighter monetary policy.
ECB Meeting Output
The meeting of the European Central Bank was held last Thursday and as most analysts expected, the interest rate remained unchanged and moved. According to their last and previous meeting last year, they are looking to revisit the monetary policy somewhere around “early” 2018. Looking at last year, the ECB managed to increase the forecasts for 2018 to 2.3% from the latter 1.8%.
Meanwhile, the prices for the Brent managed to escalate to tremendous levels yesterday as well; the prices managed to escalate to the $71 per barrel price due to the massive effect of the output cut from OPEC and non-OPEC countries. This is also the first time that the prices hit these levels since December of 2014.
The U.S. crude also managed to hit a three-year high at $66.44 per barrel price. The output cuts continue to push prices up with Russia spearheading the non-OPEC countries rally; furthermore, the output cut is expected to end somewhere around the middle of the year.
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