EUR/USD steadies below 1.2200 following sharp fluctuations

  • EUR/USD remains on track to close little changed on Thursday.
  • ECB left its policy settings unchanged as expected.
  • US Dollar Index continues to hold above 90.00.

After staying calm below 1.2100 during the first half of the day, the EUR/USD pair fluctuated sharply as investors assessed the European Central Bank's (ECB) policy announcements. Following a sharp drop to a six-day low of 1.2144, the pair staged a rebound but lost its momentum before reclaiming 1.2200. As of writing, EUR/USD was virtually unchanged on the day at 1.2175.

ECB keeps status quo

Following its June policy meeting, the ECB decided to leave the interest rates on the main refinancing operations, the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.50%, respectively, as expected. The ECB also noted that it will maintain the total envelope of the Pandemic Emergency Purchase Programme (PEPP) at €1,850 billion until at least the end of March 2022.

During the press conference, ECB President Christine Lagarde said it was too early to talk about a 'PEPP exit' and added that there was broad agreement on the monetary policy decisions.

Citing sources familiar with the matter, Reuters reported that three ECB policymakers wanted to reduce the pace of the PEPP on improving economic prospects.

On the other hand, the data published by the US Bureau of Labor Statistics revealed on Thursday that inflation, as measured by the Consumer Price Index (CPI), climbed to 5% on a yearly basis in May from 4.2% in April. This reading beat the market expectation of 4.7% and helped the USD gather strength.

However, the greenback lost its strength with Wall Street's main indexes opening sharply higher and the S&P 500 Index reaching a new record high. At the moment, the US Dollar Index is posting small daily losses at 90.07.

Technical levels to watch for


Today last price 1.2175
Today Daily Change -0.0006
Today Daily Change % -0.05
Today daily open 1.2181
Daily SMA20 1.2186
Daily SMA50 1.2075
Daily SMA100 1.2043
Daily SMA200 1.1989
Previous Daily High 1.2218
Previous Daily Low 1.2171
Previous Weekly High 1.2254
Previous Weekly Low 1.2104
Previous Monthly High 1.2266
Previous Monthly Low 1.1986
Daily Fibonacci 38.2% 1.22
Daily Fibonacci 61.8% 1.2189
Daily Pivot Point S1 1.2162
Daily Pivot Point S2 1.2143
Daily Pivot Point S3 1.2115
Daily Pivot Point R1 1.2209
Daily Pivot Point R2 1.2237
Daily Pivot Point R3 1.2256



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD pressured amid downbeat data, covid concerns

EUR/USD is trading well below 1.18 and down on the day. Markit's US Services PMI missed estimates with 59.8, souring sentiment. Worries about covid provide some support to the safe-haven dollar. The ECB's dovish decision pressures the euro.


GBP/USD hovers around 1.3750 amid after mixed UK data

GBP/USD is holding above 1.3750, clinging to this level after UK Retail Sales beat estimates but Markit's PMIs missed on both sides of the pond. Covid headlines are eyed.


XAU/USD eyes a sustained move below key $1799 support

Gold price is trading on the wrong footing this Friday, eyeing the first weekly loss in five weeks, as the US dollar remains at the highest levels in three months.

Gold News

Cardano might pull back to $1.11 before heading higher

Cardano price pierced the July 18 swing high at $1.21, indicating a resurgence of buyers. Although ADA might try to slice through $1.25, a retracement will likely evolve before tagging $1.37.

Read more

US Markit PMIs Preview: Pre-weekend dollar boost? Downbeat figures could exacerbate risk-off mood

Two steps down, one step up – that has been the playbook for risk-averse markets. What happens when traders have little time to act ahead of the weekend and the last word belongs to a downbeat figure? 

Read more