Breaking: ECB leaves rates unchanged, EUR/USD initially rises but turns down
The European Central Bank has left the interest rates unchanged and sent EUR/USD higher as opinions were mixed ahead of the event.
On the other hand, the ECB sees rates at present or lower levels through the first half of next year and says it will examine options for tiering and potential new QE.
EUR/USD has jumped to 1.1161 before falling to 1.1118 as volatility rises.
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Significant uncertainty surrounded this European Central Bank decision. Falling inflation expectations and downbeat growth prospects have pushed President Mario Draghi to signal rate cuts are coming. However, it was unclear if the ECB was set to slash rates now or wait for its updated economic forecasts due out in September.
The most recent economic indicators have been depressing – German IFO Business Climate fell to multi-year lows, following on the downbeat purchasing managers' indices published on Wednesday.
EUR/USD has been anticipating the release below 1.1150. Support awaited at 1.1120 and 1.1107 (May and 2019 low). Resistance is at 1.1155 and 1.1180.
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.
