Session Recap: ECB moves, EUR (falls then) rockets

FXStreet (Córdoba) - The ECB announced many stimulus measures, including negative rates and moved the market. The Euro initially plummeted but then bounced sharply and soared. The common currency, the Swiss Franc and the Kiwi were the best performers on the back of risk appetite. Investors will continue to digest ECB’s announcements but on Friday the NFP report will be release and could trigger more volatility.

The US dollar rose after the ECB rate cut, but then reversed sharply and tumbled across the baord, erasing weekly gains. Greenback is headed toward the employment numbers weakened and facing pressure.

The EUR/USD rebound sharply at 4-month lows and jumped above 1.3650, having the best day in three months. Among European currencies, the Swiss Franc was the best, pushing the EUR/CHF below 1.2200.

The Yen rose against the US dollar but fell against the other currencies. The USD/JPY continued to move in ranges below 102.70, as traders await the US employment report.

Commodity currencies soared during the American session, with the Kiwi outperforming. The NZD/USD finished around 0.8500, moving away from 0.8400 (June 4 lows) while the AUD/USD climbed back above 0.9300.

Main headlines in the American session

Wall Street ends at record highs after ECB, ahead of NFP

USD/JPY taking a backseat for now – FXStreet

GBP/USD breaks descending trend line

USD/CHF reverses sharply, falls below 0.8950

USD/JPY challenged by offers ahead of 103 handle

NZD/USD jumps and approaches 0.8500

Draghi unveils package of measures to boost liquidity