The euro fell against the dollar on Thursday after the European Central Bank (ECB) hiked interest rates by 50 basis points, as expected, but gave bulls no more ammunition or incentive to hold on to the euro, as that did not offer new surprises of an aggressive line. ECB rates are also expected to trend lower in the fourth quarter, which has also weighed on the euro. At the time of writing these lines, the pair USD/JPY It is trading at 140.33 and lost 0.9% on the day, after falling from a 141.93 high to a year-to-date low of 140.08.
However, in the meantime, there are prospects for the ECB to move further, which should support the Euro in the near future. Rabobank analysts explained that the meeting has virtually confirmed a third 50 basis point hike in March: “We expect a 50 basis point hike in March, followed by two 25 basis point hikes in the second quarter, to a terminal rate of 3.50%”, but at the same time noted that “the markets ran away with the few dovish parts of the announcement”.
Looking further, Danske Bank analysts argued that ECB Governor Christine Lagarde’s communication during the press conference reflected a highly divided governing council”, where she also said that ”any decision is the result of a compromise ”.
“In the end,” the analysts added, “the ECB’s intention to raise 50 basis points at the March meeting is not a 100% commitment.”
As expected, the ECB confirmed that its decision will depend on the data and each meeting. This means that as markets operate on a different narrative than what the ECB wants to convey about a more holistic plan (for example, that core inflation persists despite lower headline data), we have seen a few significantly lower returns in today’s meeting.”
|Last price today||140.34|
|Today Daily Variation||-1.22|
|today’s daily variation||-0.86|
|today’s daily opening||141.56|
|previous daily high||141.84|
|previous daily low||140.9|
|Previous Weekly High||142.3|
|previous weekly low||140.47|
|Previous Monthly High||142.86|
|Previous monthly minimum||137.39|
|Fibonacci daily 38.2||141.48|
|Fibonacci 61.8% daily||141.26|
|Daily Pivot Point S1||141.03|
|Daily Pivot Point S2||140.5|
|Daily Pivot Point S3||140.09|
|Daily Pivot Point R1||141.96|
|Daily Pivot Point R2||142.37|
|Daily Pivot Point R3||142.9|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
The former president of Argentina, Mauricio Macri, announced in a video released this Sunday (26)…
He has long fingers, huge eyes, and a very small body, but hind legs that…
hHarry Styles and Emily Ratajkowski they are together? One was enough kiss between the two…
Clear message that Russia and China they do not form a military alliance sent o…
Canadian singer Drake has decided to cancel his performance on Sunday night (26) at the…
Vladimir Putin says he plans to deploy tactical nuclear weapons in Belarus, the neighboring ally…