“The ECB is less likely than other central banks to covertly depress its currency via pursuing competitive monetary policy easing, but pursuing negative rates would open a new battle ground that could be seen in this light. Such a policy might encourage a weaker EUR notwithstanding periphery spread narrowing”, commented Greg Gibbs FX Strategist at RBS.
As of writing, the cross is advancing 0.03% at 1.3070 and a breakout of 1.3220 (high May 2) would open the door to 1.3232 (daily cloud top) and then 1.3243 (high May 1).
On the flip side, support levels align at 1.3037 (low May 2) ahead of 1.2988 (low Apr.25) and finally 1.2968 (MA200d).
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