Here are our Top 10 Takeaways for the ECB Rate Decision and their implications for the euro. While it may appear that there are the EUR positive comments offset the negatives, Draghi's emphasis on the possibility of more stimulus is the most important takeaway from today's comments.
Top 10 Takeaways from April ECB Meeting
- ECB Does Not Exclude Further Easing with Conventional and Unconventional Measures - EUR Negative
- QE, Rate Cut, Negative Deposit Rates & Narrowing Rate Corridor all discussed at meeting - EUR Negative
- EUR becoming increasingly important but not a policy target - EUR Negative
- Recovery Proceeding as Expected, Data Consistent with Moderate Growth, Late Easter Clouding Data - EUR Positive
- Risks to Economic Outlook Still Downside - EUR Negative
- ECB Says Biggest Fear is Protracted Stagnation - EUR Negative
- Council Disagreed on how March data affect s Medium Term Outlook -EUR Positive
- CPI is not as weak as PPI- EUR Positive
- Deflation Risks have not increased, Pickup in Prices Expected in April - EUR Positive
- ECB Happy with Forward Guidance- EUR Positive
There is support in the EUR/USD at 1.3700 and if the currency pair breaks below this point, the next stop will be 1.3650. A rally back above 1.3835, the 61.8% Fibonacci retracement of the 2011 to 2012 decline in March is needed to erase the downside momentum but we think EUR/USD is headed lower not higher.
Recommended Content
Editors’ Picks
GBP/USD bulls retain control near 1.3300 mark, highest since March 2022
The GBP/USD pair trades with a positive bias for the third straight day on Friday and hovers around the 1.3300 mark during the Asian session, just below its highest level since March 2022 touched the previous day.
USD/JPY pops and drops on BoJ's expected hold
USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.
Gold consolidates weekly gains, with sight on $2,600 and beyond
Gold price is looking to build on the previous day’s rebound early Friday, consolidating weekly gains amid the overnight weakness in the US Dollar alongside the US Treasury bond yields. Traders now await the speeches from US Federal Reserve monetary policymakers for fresh hints on the central bank’s path forward on interest rates.
Shiba Inu is poised for a rally as price action and on-chain metrics signal bullish momentum
Shiba Inu remains strong on Friday after breaking above a symmetrical triangle pattern on Thursday. This breakout signals bullish momentum, further bolstered by a rise in daily new transactions that suggests a potential rally in the coming days.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.