When is the ECB monetary policy decision and how could it affect EUR/USD?
|ECB monetary policy decision – Overview
The European Central Bank (ECB) is scheduled to announce its latest monetary policy update at 12:45 GMT this Thursday. The ECB is widely anticipated to maintain status-quo and leave its benchmark interest rates unchanged at 0.0% at the conclusion of the October policy meeting. This will be followed by the post-meeting press conference at 13:00 GMT, where comments by the ECB President Christine Lagarde will be closely scrutinized for clues about the central bank's near-term policy outlook.
How could it affect EUR/USD?
Fears of a double-dip recession could push the ECB to lay the ground for further easing in December meeting. Market concerns that the Eurozone economy will weaken again resurfaced after Germany and France – the region's two largest economies – announced news COVID-19 restrictions on Wednesday. Nevertheless, the ECB's dovish outlook would be enough to amplify the prevalent bearish pressure surrounding the shared currency.
Meanwhile, FXStreet's own Analyst, Yohay Elam offered a brief technical outlook and important levels to trade the major: “Euro/dollar is suffering from downside momentum on the four-hour chart and is trading below the 50, 100, and 200 Simple Moving Averages. The Relative Strength Index is nearing 30, thus close to oversold conditions, but not there yet. Support awaits at 1.1715, which is Wednesday's low point. It is followed by 1.1685, which is a double-bottom touched in October. The next line to watch is 1.1625. Resistance is at 1.1785, which provided support last week. It is followed by 1.1840, 1.1865, and 1.1880 – all high points on the way down.”
Key Notes
• ECB Monetary Policy Meeting: Another one bites the dust
• ECB Preview: Status quo reduces diminishes the risk of a meaningful move in EUR/USD – TDS
• EUR/USD Forecast: Euro set to end its dead-cat bounce with a fresh ECB-fueled fall
Description
ECB Interest Rate Decision is announced by the European Central Bank. Usually, if the ECB is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the EUR. Likewise, if the ECB has a dovish view on the European economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.
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