EUR/USD surpasses 1.1100 on steady ECB, looks to Lagarde, US CPI
- EUR/USD retakes the 1.1100 barrier following the ECB steady hand.
- The ECB left its key rates unchanged, as largely anticipated.
- Lagarde’s press conference, US CPI next on tap.
The buying bias in the single currency appears to have returned after a negative start of the day and now lifts EUR/USD back above 1.1100 the figure, or multi-day highs on Thursday.
EUR/USD now focuses on Lagarde, US data
EUR/USD now resumes the upside and surpasses the 1.1100 mark after 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 -0.50%, respectively.
The ECB also announced it will slow down the APP at a faster pace. Indeed, monthly net purchases will be of €40B in April, €30B in May and €20B in June. Additionally, in its statement, the central bank removed the suggestion that rates could be lower than actual levels.
The move higher in spot echoes on the German money markets, where yields of the 10y German Bund leaves behind the initial pessimism and climbs to fresh tops past 0.30%.
Moving forward, market participants will now closely follow the usual press conference by Chair Christine Lagarde and the subsequent Q&A session. Across the pond, all the attention will be on the release of February’s CPI.
EUR/USD levels to watch
So far, spot is advancing 0.35% at 1.1113 and faces the next up barrier at 1.1192 (20-day SMA) followed by 1.1285 (55-day SMA) and finally 1.1395 (monthly high Feb.16). On the other hand, a drop below 1.0805 (2022 low Mar.7) would target 1.0766 (monthly low May 7 2020) en route to 1.0727 (monthly low Apr. 24 2020).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
