European session review: Euro rose significantly against the US currency

The following data was published:

(Time / country / index / period / previous value / forecast)

5:30 France Change number (final data) employed in non-agricultural sector II quarter 0.2% 0.2% 0.2%

11:45 Eurozone ECB decision on interest rates 0.0% 0.0% 0.0%

The euro has appreciated considerably against the US dollar for the first time from 26 August to break the mark of $ 1.1300. Support for the single currency provided expectations of the ECB meeting. As expected, the Central Bank left its benchmark interest rate unchanged at the level of 0.0%. Also, the ECB stated that the monthly asset purchases in the amount of 80 billion euros will be continued until the end of March 2017, or longer if necessary. Regarding rates the CB noted that key rates will remain at or below current levels for long periods of time.

Now attention is turning to the press conference of the head of the ECB. It is expected that Draghi will reaffirm their intention to continue the current monetary policy as long as necessary to achieve the inflation target of 2%. Moreover, Draghi will present updated forecasts for GDP growth and inflation. Most likely, the projections for GDP will be revised down, taking into account the outcome of the British referendum. In addition, the assessment on inflation is also likely to be degraded. "Although the evidence of a significant slowdown in the third quarter was not observed, the euro zone continues to face low inflation expectations, as well as recent significant strengthening of the euro", - noted experts Capital Economics.

The pound rose slightly against the dollar, helped by strengthening risk appetite in response to higher oil prices. In addition, support for the pair GBP / USD has a general weakening of the American currency - the dollar index is now trading lower by 0.35 percent, near a session low.

EUR / USD: during the European session, the pair rose to $ 1.1315

GBP / USD: during the European session, the pair has risen to $ 1.3374, but then declined slightly

USD / JPY: during the European session, the pair traded in a narrow range