EUR/USD rebounds to 1.1250/60 post-ECB


  • 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).

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD trades firmer above 1.1300 amid upbeat market mood

EUR/USD holds the higher ground above 1.1300, as the risk-on mood weighs on the US dollar. The shared currency will remain at the mercy of the broader market sentiment as the data docket is light on Monday. 

EUR/USD News

GBP/USD off highs, around 1.2650 ahead of BOE’s Bailey

GBP/USD trims gains to trade around 1.2650 in early Europe. UK Chancellor Sunak prepares another aid package, Michael Gove pushes to prepare for Brexit. Significant differences prevail in the post-Brexit talks. BoE’s Bailey to speak later today.

GBP/USD News

Gold hovers above $1,800 as dollar drops despite lingering coronavirus concerns

Gold rises 0.30% as the dollar index drops 0.20%. The US stock futures rise, keeping the safe-haven US dollar under pressure. The US coronavirus cases tally crosses the 3.3 million mark. 

Gold News

FX Today: Vaccine, earnings optimism downs the dollar; eyes on COVID-19 stats, BOE’s Bailey

The risk-on sentiment emerged as the main market driver starting out the week, amid a quiet Asian affair, in the absence of relevant macro news. US dollar remained on the back foot, as the coronavirus vaccine optimism continued to dull its safe-haven appeal.

Read more

WTI: 200-HMA probes bears above $40.00

WTI stays pressured beyond $40.00 despite multiple bounces off 200-HMA. MACD conditions suggest bears rolling up their sleeves for entry. Bulls will have multiple upside barriers beyond $41.00.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures