EUR/USD challenges 2019 lows near 1.0930 post-ECB


  • EUR/USD accelerates the decline below 1.10.
  • ECB cut the deposit rate by 10 bps to -0.50%.
  • Downside risks in the euro area persist.

The selling pressure around the single currency is now picking up extra pace and drags EUR/USD to the 1.0940/35 band, near YTD lows.

EUR/USD much weaker after the ECB finally delivers

The pair debilitates further after President Draghi reiterated that downside risks to the euro zone outlook persist, adding that global uncertainty is particularly hurting the manufacturing sector.

The ECB now sees the economy in the region expanding 1.1% this year (from 1.2%), 1.2% in 2020 (from 1.4%) and 1.4% in 2021 (unchanged). Regarding inflation, the bank’s Staff expects consumer prices to rise 1.2% in 2019 (from 1.3%), 1.0% in 2020 (from 1.4%) and 1.5% in 2021 (from 1.6%).

President Draghi also reiterated that interest rates are expected to remain at present or lower levels until inflation picks up pace on a convincing fashion and converges to the bank’s goal.

EUR/USD levels to watch

At the moment, the pair is losing 0.67% at 1.0936 and a breach of 1.0925 (2019 low Sep.3) would target 1.0839 (monthly low May 11 2017) en route to . On the upside, the next hurdle emerges at 1.1053 (21-day SMA) seconded by 1.1084 (high Sep.5) and finally 1.1146 (55-day SMA).

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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold looks to close week flat below $1560

The XAU/USD pair climbed to a fresh daily high of $1560 in the early trading hours of the American session but struggled to preserve its momentum.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures