- European Central Bank maintains interest rates and purchase program, as expected.
- Euro loses ground after ECB announcements, press conference expected.
- EUR / USD jumps up to 1.1813 and then pulls back strong.
The EUR / USD fell to 1.1770, following the release of the European Central Bank. The price had initially risen to 1.1813, the highest in three days, but then changed direction and marked new lows. Now the focus shifts to Christine Lagarde’s lecture.
At the first Governing Board meeting following the new monetary policy strategy, the ECB made no changes and only minor changes. There was a ‘dovish’ bias in the forward orientation, which may have pushed the euro lower. However, there were no significant surprises at the moment.
The euro marked minimum against the dollar and the pound presenting a moderate fall, for the moment. EUR / USD remains steady on 1.1800, and above key short-term support of 1.1750.
Investors will continue to analyze what the ECB left behind, which can lead to volatility. In the event of a confirmation above 1.1820, the EUR / USD would be positioned to extend the raises.