The European Central Bank has said that it will not roll back the emergency measures just yet that it implemented to contain the Eurozone debt crisis. President Mario Draghi quashed talks of an early exit from emergency stimulus measures as Spain struggled to borrow in financial markets yesterday. ECB president Mario Draghi announced that European interest rates will stay at 1% and explained that the worst of the crisis is over.
Data yesterday showed positive news for the UK as the country’s services sector grew at its fastest pace in two years. Rumours that the UK may face a double dip recession have been torn and estimates of 0.3-0.5% growth for Q1 2012 are now likely. Also in the UK, House prices rose 2.2% in March, confounding forecasts for a 0.3% dip. The reason for this spike was however blamed on the reduction of the stamp duty level.
In the US, ADP employment rose with 219,000 jobs being created in the private sector. The US dollar continued strong trading despite stock markets declining and safe havens rallied.
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