- Euro weakens after Lagarde press conference.
- ECB maintains monetary policy and US data exceed expectations.
EUR / USD reached the highest level in two days during the press conference of Christine Lagarde, the president of the European Central Bank (ECB) in 1.2069, but then changed direction, falling to new daily lows at 1.2017. Before the opening of Wall Street, it operates close to that level, in negative territory for the day.
ECB and data
As expected, the ECB kept monetary policy unchanged. Lagarde at the conference stated that there was no discussion about a reduction or brake in the purchasing program. He added that while “it would be nice” to move in tandem with the Federal Reserve, it is not the most possible.
In the US, there was a greater than expected improvement in the Chicago Fed index and more relevant, an unexpected drop in the initial requests for unemployment benefits to the minimum since March of last year.
The EUR / USD pullback in the last few minutes was accompanied by a general recovery in the dollar and a drop in Wall Street futures. A consolidation below 1.2020 could be expected to test the 1.2000 zone. A return above 1.2040 on the other hand, would once again support the euro in intraday terms.
Technical levels
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