The EUR is leading the major currencies against the USD with a small 0.1% gain that has pushed the EUR / USD back above 1.13. The president of the Central European Bank (ECB), Christine Lagardehe said early Friday “when the conditions of future guidance are met, we will not hesitate to act.” This stance may prevent the EUR / USD from falling to 1.10, according to Scotiabank economists.
Lagarde stated that the PEPP will end in March 2022
“Lagarde said that the ECB ‘will not hesitate to act’ if the conditions of its future orientation are met (sustained inflation expectations above 2%), but also noted that they still expect inflation to decline from the current high levels during 2022 – which makes a hike very unlikely next year. He also stated that the PEPP will end in March 2022. His comments point to a greater willingness to act on the part of the ECB which could help the EUR avoid a sharp drop below 1.10 ”.
“The intraday low of 1.1282 will act as support before the mid-range zone and then the 1.1250 low.”
“Resistance is ~ 1.1315 followed by firmer at ~ 1.1350.”
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