ECB to keep rates at 0.75% with the 1.3150 as the lone barrier before 1.3200 - R. Lee

FXstreet.com (San Francisco) - As well known, the European Central Bank is expected to release its interest rate decision next December 6th and the market expects the bank keeping unchanged the rate. But as FXstreet.com Analyst Richard lee wrote in a recent weekly preview, the "potential questioning will emerge in the post decision press conference over the inflation and lower debt costs.

"Nothing new is expected from the European Central Bank - with policymakers likely keeping the rate at the current 0.75%," points Lee. "Potential questioning will emerge in the post decision press conference over the current condition of relatively higher inflation – which still rests just shy of the ECB’s target band – as well as the state of lower debt costs for both Spain and Italy as it pertains to potential OMT execution."

The EUR/USD is currently trading at 1.3000, 0.20% above Friday's opening price action and 25 pips above Monday's opening price at 1.2975. Lee believes that the "psychological resistance at 1.3150 remains the lone barrier to break higher in the EURUSD pair."

An "upside penetration of the figure would shift focus towards a test of 1.3200," concludes Richard Lee.

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 securities. 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 Forex 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.

RELATED TOPICS