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EUR/USD steadies around 1.1930 as investors ignore increased ECB asset purchases

  • EUR/USD remains on track to end the first day of the week lower.
  • ECB ramped up weekly asset purchases to €19.303 billion.
  • US Dollar Index continues to fluctuate in daily range below 92.00.

The EUR/USD pair started the new week in a calm manner but edged lower in the second half of the week. With the market action turning subdued during the American trading hours, the pair started to move sideways around 1.1930, where it was down 0.2% on a daily basis.

ECB boosts weekly asset purchases

In its weekly publication, the European Central Bank (ECB) announced that it bought a net €19.303 billion of assets in the week to March 12 as part of its quantitative easing programme, compared to €17.068 billion in the previous week. This development didn't allow the shared currency to stage a rebound against the greenback.

Nevertheless, Isabel Schnabel, Member of the Executive Board of the ECB, said that extrapolation from the weekly Pandemic Emergency Purchase Programme (PEPP) purchase data to overall monthly data could lead to "misleading conclusions."

On the other hand, the US Dollar Index (DXY) is posting modest daily gains at 91.80. However, the lack of fundamental drivers behind the USD strength suggests that the DXY movement on Monday is likely a continuation of last Friday's rebound.

The only data from the US on Monday revealed that the NY Empire State Manufacturing Index in March improved to 17.4 from 12.1 in February but failed to trigger a meaningful market reaction.

On Tuesday, ZEW Economic Sentiment Index for Germany and the eurozone will be looked upon for fresh impetus. Later in the day, the US Census Bureau will release February Retail Sales figures.

Technical levels to watch for

EUR/USD

Overview
Today last price1.1932
Today Daily Change-0.0028
Today Daily Change %-0.23
Today daily open1.196
 
Trends
Daily SMA201.2045
Daily SMA501.21
Daily SMA1001.2044
Daily SMA2001.1839
 
Levels
Previous Daily High1.199
Previous Daily Low1.191
Previous Weekly High1.199
Previous Weekly Low1.1836
Previous Monthly High1.2243
Previous Monthly Low1.1952
Daily Fibonacci 38.2%1.1941
Daily Fibonacci 61.8%1.1959
Daily Pivot Point S11.1917
Daily Pivot Point S21.1874
Daily Pivot Point S31.1837
Daily Pivot Point R11.1997
Daily Pivot Point R21.2033
Daily Pivot Point R31.2077

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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