- Euro is not impacted by ECB decision, market now with eyes on the US.
- EUR / USD without clear direction, more volatile but not moving away from 1.2170.
The EUR / USD rose to 1.2187 after the decision of the European Central Bank (ECB) was known, which did not contain surprises. After a few minutes the pair fell to 1.2160, to stabilize at 1.2170, the same level it had before the ECB. The focus now shifts to the Lagarde conference and the US data.
After ECB, focus on inflation and US employment data.
The euro was not significantly affected by the ECB’s decision to keep monetary policy unchanged. The statement contained practically no changes with respect to the previous one. The ECB stated that “it has decided to confirm the very accommodative stance of its monetary policy.”
The meeting showed no great surprise. Now the expectation passes at 12:30 GMT when Lagarde’s press conference will begin. At the same moment they will meet the US May inflation figures and the Unemployment Benefit Claims report. These data can generate noise in the market, especially through the impact on the bond market and on the expectations of the monetary policy of the Federal Reserve.
The dollar is marginally rising ahead of the data, partially keeping the EUR / USD limited. For now, the 1.2150 area is shown as the first support, while on the upside, the euro needs to affirm above 1.2200 to trigger further raises.