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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY
FXStreet (San Francisco) - Volatile day in currency market as the EUR/USD jumped around 130 pips from 1.3485 daily lows to close the day around the 1.3600 area. The movement was triggered by the words of ECB Mario Draghi that said the bank is still on wait and see mode.

"Was he hawkish? Not a bit." Jamie Coleman from FXBeat affirmed in a recent piece. "The door to a rate cut is fully open for March. He just took no action today, which frustrated the shorts." The EUR/USD is currently trading at 1.3590, and while the break above 200 EMA at 1.3610 is required to further highs, indicators remain flat.

Kathy Lien from BK brokers commented: "Although many investors may wonder what Draghi said to drive the currency up nearly 1 cent, it was what he didn't say that set off the rally in the currency." Lien continues saying "The ECB President did not express any major concerns about the crisis in emerging markets, increased worries about inflation, monetary conditions or the economic outlook."

The GBP/USD has been replicating movements in the last three days as cable remains in a range between 1.6250 and 1.6345. "In the 4 hours chart price stands above a still bearish 20 SMA, while indicators hover around their midlines, reflecting the lack of buying interest in the pair," FXStreet chief analyst Valeria Bednarik pointed. "However, the downside remains contained as long as price holds above key 1.6250 area, with scope to surge beyond 1.64 if 1.6340 resistance is finally broken."

On the other side, the USD/JPY seems to have found forces to jump above 102.00 as the pair bounced hard from the 101.33 to close around daily highs at 102.15.

Main headlines in the American session:

BoE holds rates, no accompanying statement

ECB holds rates

US: Initial jobless claims fall to 331,000

Canada: Trade deficit at 13-month high

US: Trade deficit widens in December

ECB's Draghi refrains from announcing changes to monetary policy

Canada: Ivey PMI increases to 53.6 in January

Wall Street closes higher on growth hopes
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