Buoyed by the European Central Bank’s decision to abandon a pledge to increase bond buys if necessary, the euro recovered on Thursday. It climbed by more than 0.3% and closed at $1.2411 compared to its previous settlement of $1.2378 before the announcement.
Analysts are taking the European Central Bank’s decision as a step to reduce stimuli. Everyone is waiting for the ECB press conference for hints about the future of its monetary tightening policy. In the background, investors suspect president Mario Draghi beginning to grow tired of the euro’s weakness.
Prices of oil continued to decline on Thursday reaching a 3-weak low due to persisting rise in U.S. crude production. The international benchmark, Brent crude futures, settled at $63.61 per barrel, which was 1.1%, or 73 cents, lower than their previous close. WTI settled at $60.12 per barrel, which was 1.7%, or $1.03, lower than their previous settlement. On Wednesday, it fell by over 2.3%.
According to the Energy Information Administration’s report issued on Wednesday, U.S. crude production persistently rose by over 86,000 barrels in the course of the week to 10.369 million barrels per day. Tyler Richey, co-editor of Sevens Report, warned that unless investors and analysts witnessed a material restraint in U.S. output in the coming weeks, prices would continue declining.