ECB Quick Analysis: Why this may be a selling opportunity on EUR/USD

EUR/USD has jumped on the high interest rate attached to the ECB's new funding scheme.
Markets have ignored the pushback on interest rates.
The euro may turn down, providing a selling opportunity.

Yohay Elam FXStreet

Follow all the developments in the ECB live coverage

The European Central Bank has surprised markets by announcing a relatively high interest rate on the new funding scheme – 10 basis points above the deposit rate. The terms of this TLTRO program have sent the euro higher as markets ignored the pushback in the guidance regarding interest rates.

The ECB has now pledged to keep interest rates low at least through the first half of 2020 – no less than six months – a substantial dovish tilt from a central bank that has negative interest rates.

And additional adverse news may still come.

ECB President Mario Draghi has often painted a dark picture of the euro-zone economies and also of the global one. He may highlight the risks of trade wars – or protectionism in his jargon. A dovish message will probably be accompanied by a downgrade of economic forecasts from the Frankfurt-based institution's staff.

And even if Draghi refrains from rocking the boat – it is already sinking. Once the dust settles, markets may realize that the bank is set to keep its ultra-loose monetary policy for longer and may even opt for renewing Quantitative Easing it worked so hard to conclude last year.

All in all, there is more negative than positive in the ECB's decision – and euro bulls could pay the price.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD tilts bullish as markets barrel toward mid-week NFP print

GBP/USD is holding a broader bullish structure on the daily chart, with price trading well above the 50 Exponential Moving Average at 1.3507 and the 200 EMA at 1.3310, confirming the intermediate uptrend that has been in place since the November 2025 low near 1.2300.

Gold pushes back above $5,000

The daily chart shows spot Gold in a parabolic uptrend that accelerated sharply from the $4,600 area in late January, printing a record high at $5,598.25 before a violent reversal erased nearly $1,000 in value during the final days of the month.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.