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
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by 50 bps.
EUR/USD still targets the 2024 peaks around 1.1200
EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
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.