- EUR/USD fell back below 1.0600 on Thursday.
- The ECB raised rates 50 basis points at its event.
- Attention now turns to Lagarde’s press conference.
He EUR/USD lost ground after the initial rise to the 1.0630/35 band and returned below 1.0600 following the ECB interest rate decision, dipping to fresh daily lows at 1.0551, but is now regaining ground.
EUR/USD is now focused on Lagarde
EUR/USD is leaving initial optimism behind and refocusing on the area below the 1.0600 zone after the ECB announced a 50 basis point rate hike at its event on Thursday.
In effect, the central bank raised the interest rate of the main refinancing operations, the interest rate of the marginal credit facility and the deposit facility to 3.50%, 3.75% and 3.00%, respectively.
Based on updated macroeconomic projections, the ECB expects the economy to grow by 1.6% in 2024 and 2025, while inflation will average 5.3% this year and 2.9% in 2024.
The ECB refrained from signaling future interest rate moves as it sees inflation still high.
Investors will closely follow President Lagarde’s usual press conference.
EUR/USD Levels
For now, the pair is up 0.22% at 1.0600 and a break of 1.0759 (March 15 monthly high) would target 1.0804 (Feb. 14 weekly high) en route to 1.1032 (2023 Feb. 2 high).
On the other hand, the next support lies at 1.0516 (monthly low on March 15), followed by 1.0481 (2023 low on January 6) and finally 1.0323 (200-day SMA).
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.
