- The euro among the day’s winners boosted by the ECB’s strategy review.
- EUR / USD finds resistance at the 1.1845 / 50 band.
The EUR / USD rose to 1.1845, reaching a two-day high. The revision of the European Central Bank’s strategy boosted the common currency. The euro found resistance around 1.1845 / 50 and lost momentum, also partly due to a stronger dollar.
The ECB approved its new strategy, adopting a symmetric inflation target of 2%. This announcement generated a rise in the euro and especially the Swiss franc. Although in the market, the one that advanced the most on Thursday is the Japanese yen, fueled by risk aversion and falling US Treasury yields.
In minutes data in the US will be published on requests for unemployment benefits. The focus will then continue on what happens to the equity markets and the bond market. The 10-year rate of the Treasury bond is at its lowest since February below 1.30%.
The dollar index (DXY) falls 0.23% and trades below 92.50. This decline is due to the rally of the Swiss franc, the yen and the euro. On the rest of the fronts, the dollar continued to show some strength, which may partly explain the upside limitations in the EUR / USD.
Technical levels
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