EUR / USD clings to gains near 1.2050 level and moves shortly after ECB

• USD remains weak near multi-week lows and helps EUR / USD gain some traction on Thursday.
• The ECB leaves its monetary policy setting unchanged and does little to boost the pair.

The pair EUR / USD is holding its intraday gains around the 1.2050 e region And it has moved shortly after the ECB announced its monetary policy decision.

After a brief consolidation at the start of the European session, the pair has regained some positive traction on Thursday and has built on the previous day’s rebound from the key psychological level of 1.2000. The US dollar has been under pressure near multi-week lows amid expectations that the Fed will keep rates low for a longer period.. This, in turn, has been seen as a key factor that has provided a modest rise to the EUR / USD pair.

In the meantime, the common currency has had a rather subdued reaction to the decision of the European Central Bank (ECB) to leave its monetary policy configuration unchanged. This was widely expected by market participants. This, coupled with the fact that updated economic projections will not be released until June, has not provided any significant boost to the EUR / USD pair, making the meeting a non-event for the market.

However, the minutes of the March meeting indicated that there could be a rigorous debate on the future of the PEPP. Therefore, the key focus of attention will be on the post-meeting press conference, where the ECB President’s comments, Christine Lagarde, could instill some volatility in the common currency. Aside from this, the usual weekly US Unemployment Claims data could sway the USD and lead to some significant trading opportunities.

EUR / USD technical levels to follow