EUR/USD stands pat post ECB conference

The EUR/USD pair held steady showing almost no changes after the ECB data met expectations.

On Thursday, ECB President Mario Draghi stated that Eurozone banks did well and managed to weather the market volatility caused by Brixet.

Today, EUR/USD almost reached four-month low after Draghi sent notable indications that the ECB may use easing tools if actions are needed to stimulate the economy. The euro traded down by almost 3% against the greenback since last month's historic Brexit referendum.

In May Excon Fuji Securities tfound the EUR/USD pair almost stood pat slightly ranging between 1.09 and 1.12, due to lack of long-term data on the U.K.'s Brexit decision to leave the European Union. Mario Draghi also stated that financial markets behaved solidly during the Post-Brexit period, increasing central bank liquidity and creating swap lines that ensure stability.

The U.S. Dollar Index dropped more than 0.25% to an intraday low of 96.77 before slightly increasing to 96.94 on Thursday. Earlier this week, the index rallied above 97 to reach its highest level for the first time in four months since March 10th.

Elsewhere, Fed Funds Futures traded with tumbled expectations for a rate-hike on 2016. The Federal Open Market Committee meets in Washington next week. Analysts have appeared to split on the timing of the widely-awaited interest rate hike. These expectations may spark short-term headwinds for the USD with investors betting on higher borrowing-costs.

A lot of uncertainty across global markets

On July 19th, The Dow Jones Industrial Average (DJI) gained almost 0.1% and closed at 18,533.05, while the S&P 500 climbed 0.2% and closed at 2,166.89. In the same time, the tech-laden Nasdaq Composite Index increased 0.5% to close at 5,055.78.

Investors are likely waiting for June employment report within a quick switch in financial markets from fears over the U.K. referendum.

The U.K. referendum is expected to slightly impact the U.S. growth, which is considered by far one of the main reasons that accelerated buying in the Treasury market this month. By the end of the first week, earnings for the S&P 500 components were extremely poor. Bank of America Merrill Lynch analysts have lowered their earnings expectations to show no growth on 2016.

The bank is expected to this year accelerated due to uncertainty of several risk events such as Chinese economic data reports Excon Fuji Securities, Brexit and the presidential election. All major events could have negative effects on earnings, thus, companies end up investing less due to this uncertainty.

Given their global exposure, Financials, Industrials, Tech and Energy are expected to struggle throughout 2016. In the meantime, the dollar is expected to be stable in 2017, which should help boosting multinational earnings.