EUR/USD clings to gains on Draghi’s presser, around 1.0560

The demand for the single currency seems to lose some traction as President M.Draghi’s press conference is under way, with EUR/USD struggling to extend earlier gains further north of 1.0570.

EUR/USD choppy on so far dovish Draghi

EUR-sellers stepped in once again today after President Draghi reiterated the central bank’s readiness to keep rates at present or lower levels well past the end of the current QE programme. Draghi also said that the bond-buying programme is intended to run until inflation picks up on a sustainable fashion.

The Council also added that underlying inflation pressures remain subdued and that economic risks stays on the downside, although there seems to be some signs of a stronger recovery.

The central bank now sees EMU’s GDP at 1.8% in 2017 (vs. 1.7% prev.), 1.7% in 2018 (vs. 1.6% prev.) and 1.6% in 2019 (unch.). Regarding inflation, the ECB now expects consumer prices to rose at an annualized 1.7% this year, 1.6% next year and 1.7% in 2019.

On the US data front, in the meantime, Initial Claims rose by 243K WoW vs. 238K expected, taking the 4-Week Average to 236.50K vs. 234.25K previous. Further data saw Export Prices rising 0.3% MoM and Import Prices gaining 0.2% inter-month in February.

EUR/USD levels to watch

At the moment the pair is gaining 0.09% at 1.0550 facing the next up barrier at 1.0582 (20-day sma) followed by 1.0608 (55-day sma) and finally 1.0643 (high Mar.6). On the other hand, a break below 1.0525 (low Mar.9) would target 1.0513 (low Mar.1) en route to 1.0499 (low Mar.3).