EUR / USD clings to 1.1700 after ECB, attention is now on Lagarde

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The common currency has remained apathetic after the ECB’s decision on Thursday, motivating the pair EUR / USD to keep hovering around the 1.1700 zone.

EUR / USD almost unchanged after a stable ECB

EUR / USD is moving through the 1.1700 zone, at the lower limit of the weekly range, after the Governing Council of the ECB left its monetary policy unchanged at Thursday’s event, coinciding with previous expectations.

In fact, the ECB left the interest rate on the main refinancing operations, the interest rate on the marginal credit facility and the deposit facility intact at 0.00%, 0.25% and -0.50%, respectively.

Further, the central bank left the Pandemic Aid Purchase Program unchanged in 1.5 trillion euros, which is expected to be valid until at least June 2021. In addition, the ECB suggested that the update of the economic forecasts that will be published in December should help recalibrate the stimulus. The ECB also expects that interest rates will remain at current levels or lower until the inflation outlook matches the bank’s objective.

Looking ahead, the focus should be on the press conference of the President of the ECB, Christine Lagarde.

EUR / USD levels

At the time of writing, the EUR / USD pair is shedding 0.42% on the day, trading at 1.1697. The next support is at 1.1688 (Oct 15 low), followed by 1.1612 (Sept 25 low) and 1.1495 (Mar 9 high). On the other hand, a breakout of 1.1880 (October 21 high), would point to 1.1917 (September 10 high) on the way to 1.1965 (August 18 high).

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Credits: Forex Street

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