- EUR / USD is consolidating daily losses in the American session.
- The restrained comments from ECB President Lagarde weighed on the euro.
- The US Dollar Index is still on track to close above 93.00.
The pair EUR/USD it spent the first half of the day moving sideways above 1.1800, but lost its traction before the US session. With comments from European Central Bank (ECB) President Christine Lagarde on the economic policy outlook putting additional weight on the shared currency, the EUR / USD pair fell to a six-day low of 1.1746. At time of writing, the pair was down 0.4% on the day at 1.1765.
Lagarde reminds the markets of the ECB’s action in December
While delivering his opening remarks at the ECB Forum on Central Banking, Lagarde noted that the Pandemic Emergency Purchase Program and Long-Term Refinancing Operations (TLTRO) have proven to be effective tools. “Therefore, they are likely to remain the main tools for adjusting our monetary policy,” Lagarde added.
Commenting on the economic outlook, Lagarde said that even if the second wave of the coronavirus turns out to be less intense than the first, it poses no less danger to the economy.
On the other hand, despite the lack of fundamental drivers, the dollar continues to gain strength against its rivals with the US dollar index (DXY) looking to close above 93.00 for the first time in a week.
On Thursday, the industrial production report for the euro area, consumer price index (CPI) data from Germany and the US will be analyzed as new catalysts. In addition, the ECB will publish its Economic Bulletin.
Credits: Forex Street
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