Officials drove EUR / USD into turbulence
On Friday, January 26, the single European currency against the dollar in the morning trading moderately grows after a small drawdown the day before.
Yesterday, on Thursday, the euro and the dollar were subjected to pronounced volatility - the players were caught off guard by mutually contradictory comments by the powers that be on the economy and the foreign exchange market.
In the middle of yesterday's trading, the pair EUR / USD soared above the level of 1,253 against the backdrop of comments by the head of the European Central Bank following the meeting. Mario Draghi said that economic data point to "convincing and extensive" economic growth, and expressed hope for the revival of inflation in the medium term. These statements and allowed the euro to jump to 1%, before the win was lost.
However, later on in the course of trading on Thursday, the American proverb "the higher you take off, the harder it will fall" - the EUR / USD rate fell from the peaks reached to 1.236 in a matter of hours. Here, too, the case was not without the rhetoric of officials - this time with an unexpected "verbal intervention" was made by Donald Trump. The American president said that the dollar "will grow stronger and stronger," and that he personally wants to see a strong dollar.
It is noteworthy that these comments by Trump sounded a day after the completely opposite statements of the US Treasury Secretary Stephen Mnuchin, who approved a weak dollar as a favorable situation for US foreign trade.
In the morning trading on Friday, the EUR / USD pair is again trying to gain a foothold above the level of 1.24, but after yesterday's fall from intraday highs, these attempts do not look too convincing. Technical signals on the 4-hour chart of the pair are mixed.