EUR/USD recovers from ECB losses and rises to 1.1370
|The EUR/USD pair erased the losses the followed the ECB decision and Draghi’s press conference. It rose back above 1.1650 and recently reached 1.1370. As of writing, trades at 1.1365, marginally lower for the day.
The euro tested earlier today the 1.1400 area but failed to break higher and then weakened after the ECB meeting. It bottomed at 1.1330 and then bounced back to 1.1360.
The European Central Bank kept rates unchanged and announced an end to the asset purchase program. “The decision was widely expected, but we find great interest in the fact that the ECB now ties the reinvestment period up to the first rate hike – and that the notion of the next step is a hike from the ECB, which would be a hawkish signal. Somewhat downbeat and hopeful message on growth, inflation, and wages. Markets generally traded within a narrow band, and today’s meeting does not alter our expectation of the ECB hiking rates in December 2019”, said analysts at Danske Bank.
The greenback posted mix results across the board. It gained versus the yen supported by higher US yields and fell modestly versus commodity currencies. On Friday, the retail sales report is due.
EUR/USD Levels to watch
To the downside, the key support levels are seen at 1.1330 followed by 1.1300/05 and 1.1275. On the upside, resistance now might be located at 1.1400 (Dec 11 high), followed by 1.1425 and the relevant 1.1445.
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.