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The euro exchange rate has risen sharply against the U.S. dollar after the European Central Bank announced new measures easing monetary policy , and gave no solid hints that it may soon be done that has not met the expectations of some investors who had expected a rate cut .
The euro was due to the fact that after the rate cut at the November meeting, it was expected that this is not enough , and some form of monetary easing will be offered or promised in the future. The absence of this has led to a reduction in rates in the euro's decline .
During a press conference following the decision of the Governing Council of the ECB to leave rates at 0.25 % , Mario Draghi reiterated his commitment to " transparency policy " and retention rates at current or lower levels for a long period of time.
ECB chief said that economic growth in the euro area was restored , as expected , but inflation will remain low for a long period before they reach the target level of 2%. The Governing Council will continue to " closely monitor the situation " and is ready to take " drastic measures" if required.
Moreover, Draghi said the uncertainty in emerging markets as a risk for the economic recovery of the eurozone. He also noted separately weak domestic demand and slow structural reforms in some EU countries as risks.
British pound retreated from lows against the dollar after the Bank of England left interest rates at 0.5% as expected . Program of asset purchases was also left on the 375 billion accompanying statement was not, but the head of the Central Bank Governor Mark Carney said earlier that he was not going to raise rates earlier, and that the target level of unemployment rate in the 7.0 % is not a factor that triggers the policy tightening . It is expected that the minutes of the meeting reflect the increased emphasis on the bank's inflation. Recall that the inflation report last month reflected the value at the target of 2.0 % for the first time in the last 4 years.
Little impact on the currency also had a report that showed that the rise in house prices in the UK slowed slightly in the last month , and confirmed the average forecast of experts. This was stated in the report of Halifax. According to figures for January house price index rose by 7.3 per cent per annum, compared with an increase of 7.5 percent in December. In monthly terms, the house price index rose 1.1 percent in January , while offsetting the 0.5 percent decline in the previous month , which was revised downward from -0.6 percent. Expectations were at the level of 0.4 percent.
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