Finally, after several months, the European Central Bank took the situation under its control (we cannot believe that Germany was behind this) and announced Thursday the beginning of unlimited bond buying of the countries with huge debts such as Spain and Italy, the cost of financing is drowning increasingly.
The ECB president Mario Draghi was loud and clear while giving his speech and the markets reacted with a true wave of euphoria which has extended to these hours.
Thus, S&P closed Thursday at its four year maximum, right at the eve of the fourth anniversary of the fall of Lehman Brothers, which eventually blew the bombshell that was the housing bubble in the United States.
The euro, the currency that benefited the most on yesterday’s news, currently exceeds 1.27, the highest value since 21 June, while the British pound which was about 1.60 at the opening of the European session slightly decreased.
The Swiss franc went down and there is a mathematical explanation to it which is not difficult to understand: the euro rose anchoring to 1.20, that the franc, as the result, would is favored against the dollar. The decision has not been officially announced yet to raise the floor area of ​​1.20 to 1.22 / 1.25; the franc will go near parity against the dollar and not the euro to gain space. SNB sees predicts that the euro will continue its upward trend for a while.
The shopping spree on Thursday hit oil which soared upward, carrying the Canadian dollar which finally broke against the dollar to 0.9840 support and closed at 0.98. The Mexican peso broke the barrier of 13 pesos per dollar for first time in several months. In both cases, these currencies are overbought and are likely to see a correction of the same range.
The euphoria spreads around the world, when in fact, in practice, nothing is yet settled, more than ads that, you know, coming from the European Central Bank move to turtle speed.
The euro area reached 1.29 in no time. The Australian dollar will continue to build a strong recovery undoubtedly to seek further to at least 1.06. So, the Canadian dollar could continue its upward trend, if oil approaches to the level of $100.
The Dow Jones index futures demonstrated a strong upward movement, and good employment data is not well interpreted by the market. Rather the opposite. Stocks fell due to that job creation was not enough. In light of the trends presented in this hour, both stock indices like the dollar pairs, signify that there will be a strong correction soon with a massive rise of the dollar, at least in today's session .