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The euro fell after the head of the European Central Bank Mario Draghi did not rule out that the European regulator may implement quantitative easing program , while maintaining a long period of inflation.
" We do not exclude the possibility of quantitative easing in order to cope with that too long a period of low inflation " - Draghi said at a press conference after a meeting of the ECB.
He said that the controller is ready to use unconventional instruments of monetary policy , if the need arises , and the current mandate allows it. While Draghi noted that while the lack of traditional instruments .
Today the ECB left its key interest rate at a record low of 0.25 % per annum.
Officials have refrained from raising against the backdrop of conflicting signals on the one hand, the economy in the region , covering 18 states , is gradually recovering , and on the other hand, the unemployment rate remains very high. At the same time companies are trying to raise prices .
According to Draghi , the possibility of quantitative easing was discussed at the meeting on Thursday as a possible tool .
By prognozamn ECB head , inflation will remain at a minimal level during the current year , and the acceleration will be recorded only in the 2015 target of 2% consumer price inflation reached only by the end of 2016
As for economic growth , it is restored at a moderate pace , although downside risks remain , Draghi said .
Some support to the dollar was data showing that in March the index of business activity in the U.S. service sector , calculated by the Institute for Supply Management (ISM), increased slightly, reaching the level of 53.1 while compared with the February reading at around 51.6 . According to experts , the value of this indicator was up to 55.5 . All major sub- indices were in February in the territory of the expansion (more than 50 ), and 3 out of 4 even showed growth.
Little impact on the European currency also have today's data , which showed that business activity index for the services sector fell in March to reach 52.2 from February's 32-month high of 52.6 points . Experts expect that this figure will be 52.4 points. However, the service sector firms were more optimistic about future prospects - the sub- index of business expectations rose to 64.0 from 62.4 , the highest since mid-2011. The final composite index fell to 53.1 from 53.3 in March . Preliminary reported 53.2 . However, the index remains above 50 for the ninth consecutive month , based on improved market conditions and an increase in new orders.
Another report showed : in February, sales rose by 0.4 percent compared with an increase of 1.0 percent in January (revised downwards from 1.6 per cent). Many economists had forecast a decline in sales of 0.3 percent. Add that food sales rose in February by 0.3 percent , while sales of non-food - by 0.8 percent . In annual terms, sales in February also increased - by 0.8 percent , which was slightly higher than estimates of experts at 0.6 percent.
Pound fell against the dollar , which was associated with the release of weak UK data . As it became known , the services sector continued to expand in the UK last month , indicating that the sustained economic growth in the first quarter , although the pace of this growth was the slowest since June last year . According to the index of purchasing managers index for the services sector fell to 57.6 points in March from 58.2 in February , which was below the consensus forecast of economists at the level of 58.2 points. Nevertheless, the index remained well above the level of 50 points , which indicates expansion and points to strong growth in the services sector , which accounts for over three quarters of the UK economy. We add that the employment index in the services sector fell to 53.5 in March from 55.6 in February , the new orders index increased at the slowest pace in 10 months , and the index of business expectations fell to its lowest level since November . Studies have also revealed that the composite index of business activity for the manufacturing, construction and service sector fell to 58.1 in March from 58.6 in February , while reaching the lowest level since June last year. We add that the prices paid index fell to its lowest in nearly a year .
The yen traded almost unchanged against the dollar ahead of tomorrow's publication of official unemployment data from the U.S. Labor Department . According to the median forecast of economists in March U.S. employers created 200 thousand jobs against 175 thousand in the previous month . Yesterday the published employment figures from the Research Institute of ADP. In March, private sector employment increased markedly , came close to the forecasted values. According to a report last month, the number of employees increased by 191 thousand compared with a revised upward figure for the previous month at 178 million ( initially reported growth of 139 thousand ) . Add projected their number would grow to 192 thousand
The Japanese yen also affected the data for China , which showed that the mood in the service sector in China have improved in March , which is a positive sign for the second largest economy in the world . Purchasing Managers Index for China's services sector , which is calculated HSBC, rose to 51.9 against 51.0 in February. Nevertheless , the official index of manufacturing activity in China in March dropped to around 54.5 to 55.0 in February.
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