Financial Times highlight Excon Fuji Securities USD rise against EUR after ECB interest rate move

TOKYO, Japan, Jan. 04, 2017 /Financial Times/ Excon Fuji Securities report on the euro as it slipped against the dollar by 0.11% to 1.1177, after the European Central Bank said it was maintaining its benchmark interest rate at a record-low 0.0%, in line with market expectations. 

ECB President Mario Draghi said shortly after the decision that the bank revised its inflation forecast for 2016 up to 0.2% from 0.1% before, but kept its inflation forecasts for 2016 and 2017 at 1.3% and 1.6% respectively.

He also warned that inflation in the euro area is likely to remain very low, or negative, for some time. In addition, the ECB raised its growth forecast for 2016 up to 1.6% from 1.4%, but left its forecasts for the following two years unchanged.

"Draghi stressed that the ECB would continue to run its bond-purchasing program until March 2017, or until inflation moves back towards the bank’s target of close to, but just below 2%,". commented Daniel Sharp, Director of Corporate Equities at Excon Fuji Securities

The U.S. dollar index, was steady at 95.39, off lows of 95.15 hit earlier in the day. Meanwhile, the dollar was lower against the pound, with GBP/USD up 0.30% at 1.4455, while USD/CHF held steady at 0.9885.

The dollar held steady after payroll processing firm ADP said non-farm private employment rose by 173,000 last month, just below expectations for an increase of 175,000.

Separately, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 28 decreased by 1,000 to 267,000 from the previous week’s total of 268,000.