EUR/USD consolidates below 1.1850 ahead of Lagarde, ECB minutes
|- EUR/USD recovered sharply from the previous day’s low near 1.1780 on Friday.
- ECB announced a new monetary policy strategy on Thursday, adopting a 2% inflation target.
- US dollar index remained steady below the 13-week high near 92.45.
EUR/USD accumulated minor losses on Friday morning Asian’s session. The pair took shelter near the multi-month low around 1.1795. As of writing, the EUR/USD was trading at 1.838, down 0.04% for the day.
The US Dollar Index (DXY), which tracks the greenback performance against six major rivals, held steady below its 13-week high, despite softer US economic data and a fall in the US 10-year benchmark Treasury yields.
Investors stay invested in the US dollar as the sentiment sours on renewed coronavirus infections, due to the highly contagious Delta variant and jitters to economic recovery.
On the other hand, the shared currency managed to hold the ground against the greenback after the ECB announced a new monetary policy strategy on Thursday. The ECB’s new policy made room, which would allow inflation to overshoot.
In its first strategy review since 2003, the ECB adopted a 2% inflation target over the medium term, compared to the previous below but close to a 2% inflation target.
The Eurozone is expected to expand at 4.8% in 2021, and 4.5% in 2022 as compared to May’s estimate of 4.3% and 4.4% respectively as per the revised ECB’s revised growth projections.
Reduced risk appetite and the modest USD strength keep gains limited for the pair.
EUR/USD additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.