EUR/USD tumbles as ECB’s Knot says euro strength would take prominence if it threatens inflation outlook

Commenting on the euro exchange rate, the European Central Bank (ECB) Governing Council member and the head of the Dutch central bank Klass Knot said the euro strength would take prominence for the central bank if it threatens its inflation outlook.

Additional quotes

“The ECB will act if finance conditions were to worsening due to market stress.”

“We have the tools to act on euro strength.”

“Economic outlook depends on vaccine rollout.”

“Economic impact of the second wave of lockdowns seems less severe than first.”

“Side effects of monetary policy are worrying, but in crisis there is no trade-off.”

EUR/USD heads towards 1.2100

The above comments exerted additional pressure on the euro, as the spot tumbled nearly 30-pips to hit fresh daily lows at 1.2120. The spot sheds 0.30% on the day.  


EUR/USD: 15-minutes chart 

The US dollar continues to recover ground across its main peers amid broad risk-aversion, keeping the sentiment around the spot undermined.

Markets remain focused on the US durable goods data and Fed outcome.

EUR/USD: Technical levels


Today last price 1.2123
Today Daily Change -0.0043
Today Daily Change % -0.35
Today daily open 1.2167
Daily SMA20 1.219
Daily SMA50 1.2125
Daily SMA100 1.1949
Daily SMA200 1.1654
Previous Daily High 1.2176
Previous Daily Low 1.2108
Previous Weekly High 1.219
Previous Weekly Low 1.2054
Previous Monthly High 1.231
Previous Monthly Low 1.1924
Daily Fibonacci 38.2% 1.215
Daily Fibonacci 61.8% 1.2134
Daily Pivot Point S1 1.2125
Daily Pivot Point S2 1.2082
Daily Pivot Point S3 1.2057
Daily Pivot Point R1 1.2193
Daily Pivot Point R2 1.2219
Daily Pivot Point R3 1.2261



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