Commenting on the euro exchange rate, the member of the Governing Council of the European Central Bank (ECB) and the director of the Dutch central bank, Klass Knot, has said that the strength of the euro would become important for the central bank if it threatens its inflation outlook..
Additional comments:
“The ECB will act if financial conditions deteriorate due to market stress. “
“We have the tools to act on the strength of the euro. “
“The economic outlook depend on the launch of the vaccine“.
“The economic impact of the second wave of lockdowns seems less severe than the first.”
“The side effects of monetary policy are worrisome, but in a crisis there is no compensation.”
EUR / USD is heading towards 1.2100
The comments above have put additional pressure on the euro as the pair has dropped nearly 50 pips to hit fresh daily lows at 1.2120.
EUR / USD 15 minute chart
The US dollar continues to regain ground against major currencies amid widespread risk aversion, which keeps sentiment around the pair affected.
Markets remain focused on US durable goods data and the Fed’s monetary policy decision.
EUR / USD 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.
