- Volatility increases in EUR / USD, same remains in recent range.
- European Central Bank announces extension of the purchase program.
- US data show unexpected rise in jobless claims.
Following the release of US economic data and the launch of Lagarde’s press conference following the European Central Bank meeting, EUR / USD rose to 1.2135, but then changed direction and fell to 1.2096. Volatility is on the up, but the price remains within Wednesday’s range.
The ECB, as expected, maintained interest rates and announced an increase in the purchase program and new long-term financing operations for banks. The statement did not generate surprises. Lagarde explained that the impact of the second wave of coronavirus cases is greater than expected. They estimate that inflation will remain negative until early 2021. Asked about the exchange rate, given the recent rise in the EUR / USD, he reiterated the message that he does not have an exchange rate objective.
The US saw a jump in initial jobless claims to the highest since mid-September. This was not expected. Continued orders also rose. At the same time, the retail inflation data came out (+ 0.2% in November) which did not generate surprises.
The euro was partly favored by the actions of the ECB, but at the same time there is a fall in the stock markets throughout the world, which have favored the dollar. The dollar index moved away from the lows in the last hour, returning to the 91.00 area.
Financial markets have increased volatility in the last hour before data from the US and the ECB, there is also the European summit and the non-resolution of Brexit. Despite this, the EUR / USD remains in the recent range. Short term resistance can be seen at 1.2150, while to the downside a confirmation below 1.2070 would point to an extension of the downward correction.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
