- ECB raises interest rates by 50 basis points, as expected
- The dollar tries to stabilize but remains under pressure, the euro falls modestly after the ECB.
- EUR/USD moves away from the recent high, in a moderate correction.
EUR/USD is falling on Thursday, having hit a month high at 1.1032 hours ago. The pair is trading lows in the 1.0935 area as ECB President Christine Lagarde gives the post-meeting press conference.
ECB, data and Friday NFP
The result of the meeting of the fed it made the dollar fall and the stock markets rise, which ended up pushing the EUR/USD above 1.1000, the level reached for the first time since March of last year. Powell’s less harsh tone, and upbeat outlooks on growth and inflation, weighed on the dollar.
On Thursday, the European Central Bank He also raised the interest rate by 50 basis points and stated that in March it will rise again by that magnitude. Lagarde is giving a press conference. In his first words, he stated that economic activity has slowed down significantly, although he expressed that the economy is more resilient than expected and should recover in the coming quarters.
In the US they met economic data that was above expectations. Initial claims for jobless benefits fell to their lowest in months at 183,000, with an increase to 200,000 expected. Non-farm productivity rose 3% in the fourth quarter, more than the 2.4% expected. Unit Labor Costs increased 1.1% in the fourth quarter, below 2%.
The dollar is not affected by the data. The eyes of the market at this time are focused on Lagarde’s conference, corporate results and the preview of the official US employment report that will be published on Friday.
technical overview
The EUR/USD is correcting downwards, in a context of increasing volatility due to the events taking place. The dominant trend remains bullish and should it come back and firm above 1.1000, further gains look possible, even despite overbought indicators.
In the very short term, the intraday bias is expected to persist while below 1.0990, where the 20 hour SMA is passing. A return above would change the very short-term picture back to bullish.
technical levels
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.
