EUR TO CROSS TWO YEAR HIGH: PACED BY ECB PRESS CONFERENCE

Today is a good day for EUR. The Introductory statement to ECB press conference released @ 13:30 (GMT),March 6, 2014.In the statement ECB clearly stated that it will not change its strategies and will keep the accommodative monetary policy as long as necessary. The statement also expected that the inflation rate will reach at 1.7% in 2016. ECB says that it will consider all of the available instruments.

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The EUR rally has received more strength from the poor non farm productivity(QoQ) data. Non farm productivity data may arise some fear of lower than expected non farm payroll data coming @13:30, March 7, 2014. The rally will be slower and will wait for the non farm payroll data released tomorrow. If the data come lower than expected the EUR/USD may reach on  the top of two year at 1.39000.

The Introductory statement to ECB press conference contains the following key issues:

• ECB decided to keep the key ECB interest rates unchanged
• HICP inflation rates being increased gradually towards levels closer to 2%
• Available information and analysis confirmed the ECB decision to maintain an accommodative monetary policy as long as necessary
• ECB ready to use all instruments available to control monetary market.
• Growth in broad money (M3) and credit
• Fiscal imbalances are being reduced in the euro area

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