- ECB left its key rates unaltered, as broadly expected.
- EUR/USD recedes to the 1.1200 region post-ECB.
- Markets’ attention now shifts to ECB’s Draghi.
The shared currency now looks volatile following the ECB decision on rates, with EUR/USD falling to the 1.1200 handle and then bouncing to the 1.1250 zone.
EUR/USD now focused on Draghi’s presser
The pair keeps levels well above 1.1200 the figure after the ECB’s Governing Council left its monetary status quo unchanged at today’s meeting, as largely anticipated by markets.
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 -0.40%, respectively.
From the statement, the ECB said it will continue to reinvest repayments from the APP. In addition, the central bank expects rates to remain at present levels for as long as it deems necessary, likely through H1 2020. The central bank also unveiled TLTRO terms.
Looking ahead, attention should gyrate to President Mario Draghi’s press conference and the subsequent Q&A session.
EUR/USD levels to watch
At the moment, the pair is advancing 0.30% at 1.1252 and a breakout of 1.1306 (high Jun.5) would target 1.1323 (high Apr.13) en route to 1.1343 (200-week SMA). On the other hand, the next down barrier lines up at 1.1200 (low Jun.6) followed by 1.1189 (21-day SMA) and finally 1.1116 (low May 30).
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