EUR/USD climbs to one-week high, around mid-1.1300s post-ECB decision
- The post-FOMC USD selling pushed EUR/USD higher for the second successive day.
- The lack of fresh dovish signals from the ECB provided an additional boost to the pair.
- Investors now look forward to the post-meeting press conference for a fresh impetus.
The EUR/USD pair added to its intraday gains and climbed to a one-week high, closer to mid-1.1300s after the European Central Bank announced its policy decision.
The pair built on the previous day's post-FOMC bounce from the 1.1220 region and gained some positive traction for the second successive day on Thursday. The ongoing US dollar retracement slide from the vicinity of a 16-month top provided a modest lift to the EUR/USD pair, which was further underpinned by the lack of fresh dovish signals from the ECB.
As was widely expected, the ECB left its monetary policy settings unchanged at the end of the December policy meeting. In the accompanying statement, the ECB announced that it will discontinue net asset purchases under the PEPP in March 2022. This, in turn, was seen as another factor that inspired the euro bulls and collaborated the intraday move up.
Market participants now look forward to the post-meeting press conference, where comments by ECB President Christine Lagarde could provide some impetus to the EUR/USD pair. Traders will also take cues from the US economic docket, featuring the Initial Weekly Jobless Claims, Philly Fed Manufacturing Index, Industrial Production and flash US PMIs.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
