Dollar Opens Lower

Last week, European Central Bank (ECB) president Mario Draghi issued a statement that the bank shall take all the necessary measures to save the ailing euro.

Mike Jones, currency strategist for the Bank of New Zealand in an interview said that markets were somehow expecting Draghi to get his “bazooka and he turned up with his pea shooter.”

ECB still has yet to take the necessary steps to alleviate the debt crisis in the eurozone.

It has been a week since Draghi’s promise and investors are mightily frustrated. As result, not only is the euro affected, but the Australian dollar as well which opened lower from $1.0477 in Thursday to $1.0466 today, Friday.

With no concrete steps from the ECB as heard from the press conference, Jones said that all optimism was unwound.

He believes though that the Aussie dollar will not fall any further and will stay at the US$1.044 and US$1.05 range.

The ECB, however, did say that the organization would act before too long. Hopefully, this is enough not to cause wide scale selling that would put pressure on the Euro and the Aussie dollar.

On Friday night, the market shall be waiting in anticipation of the release the information on the US’ employment growth which is the non-farm payrolls data for the month of July.

According to Jones, the numbers are expected not to surprise the public after the disappointing response of the ECB to the volatility of the market this week. He added that the chances of seeing a really nasty-looking number are not that great.