EUR/USD clings to 1.1700 post-ECB, focus is now on Lagarde

  • ECB left its key rates unchanged, matching the broad consensus.
  • The pair sticks to the negative territory in the 1.1700 region.
  • Markets' attention now shifts to Lagarde’s usual press conference.

The shared currency remained apathetic after the ECB decision on Thursday, motivating EUR/USD to keep the orbit around the 1.1700 zone.

EUR/USD muted on steady ECB

EUR/USD navigates the 1.1700 neighbourhood, or the lower bound of the weekly range,  after the ECB’s Governing Council left its monetary status quo unchanged at Thursday’s event, matching the previous expectations.

In fact, the ECB left intact the interest rate on the main refinancing operations, the interest rate on the marginal lending facility and the deposit facility at 0.00%, 0.25% and -0.50%, respectively.

Further out, the central bank left the PEPP Envelope unchanged at €1.5 trillion, which is expected to run until at least June 2021. In addition, the ECB suggested that updated forecasts to be released in December should help recalibrating the stimulus. The ECB also sees interest rates to remain at current or lower levels until the inflation outlook conveges to the bank's target.

Looking ahead, attention should gyrate to President Christine Lagarde’s press conference and the subsequent Q&A session.

EUR/USD levels to watch

At the moment, the pair is losing 0.27% at 1.1714 and faces the next support at 1.1688 (monthly low Oct.15) followed by 1.1612 (monthly low Sep.25) and finally 1.1495 (monthly high Mar.9). On the other hand, a breakout of 1.1880 (monthly high Oct.21) would target 1.1917 (high Sep.10) en route to 1.1965 (monthly high Aug.18).

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