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Forex Flash: GBP/USD adds to BoE bounce on Draghi speech

GBP/USD has posted a daily high at 1.5082 following the the BoE and ECB decisions to hold policy and as ECB President conducts his Press Conference today.

The pair has found some short term resistance at the hourly 55MA, with RSI at 61, but now looks receptive to continuing its move higher. In his press conference, Draghi reissued largely similar rhetoric to previous months, commenting that inflation expectations remain anchored and economic growth is expected to pick up later in the year, despite issuing contradictory growth forecast downgrades. In the press conference, Draghi made a joke about the reactionary nature of markets, noting the “angst of the week”. In response to a later question, he added that “People underestimate amount of political capital that European leaders have invested in the euro", indicating that it was in individual nations interests to fully enact reforms.

Forex: EUR/JPY rallies to 123.75

The ECB press conference showed an upbeat President Mario Draghi, confident in Eurozone's economic recovery despite the talk of a potential rate cut. Also important to euro strength was the information that banks have already repaid 40% of net liquidity injected via LTROs.
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ECB's Draghi: Rate cut considered at March meeting

The ECB Governing Council decided to maintain the main interest rates at 0.75% at their March monetary policy meeting. During the subsequent press conference the ECB head Mario Draghi revealed that a reduction was considered by the members.
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