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2 Oct 2013
EUR/USD muted on unchanged ECB
FXstreet.com (Edinburgh) -The euro posted no reaction, with the EUR/USD stationed around 1.3520/25 on Wednesday after the ECB left the lending benchmark unchanged at 0.5%.
EUR/USD sees fireworks ahead
The attention has now shifted to the upcoming press conference by President Mario Draghi, where according to prior estimates, his tone would be tilted to the dovish side, emphasizing the current forward guidance and thus weighing on the EUR. In light of the ECB statement, analysts at BBH commented, “ It will most likely not change policy or its forward guidance. With soft inflation data and a still fragile and uneven recovery, Draghi is likely to continue to point to downside risks to growth. He will likely reaffirm that the ECB stands ready to do more "if needed" and point to the relative stability (except at quarter-end) of EONIA despite the reduction of excess liquidity”.
EUR/USD relevant levels
The pair is now retreating 0.02% at 1.3523 and a breach of 1.3517 (low Otc.1) would target 1.3500 (psychological level) en route to 1.3467 (low Sep.30). On the upside, the next resistance aligns at 1.3598 (high Feb5) followed by 1.3660 (high Feb.4) and finally 1.3711 (2013 high Feb.1).
EUR/USD sees fireworks ahead
The attention has now shifted to the upcoming press conference by President Mario Draghi, where according to prior estimates, his tone would be tilted to the dovish side, emphasizing the current forward guidance and thus weighing on the EUR. In light of the ECB statement, analysts at BBH commented, “ It will most likely not change policy or its forward guidance. With soft inflation data and a still fragile and uneven recovery, Draghi is likely to continue to point to downside risks to growth. He will likely reaffirm that the ECB stands ready to do more "if needed" and point to the relative stability (except at quarter-end) of EONIA despite the reduction of excess liquidity”.
EUR/USD relevant levels
The pair is now retreating 0.02% at 1.3523 and a breach of 1.3517 (low Otc.1) would target 1.3500 (psychological level) en route to 1.3467 (low Sep.30). On the upside, the next resistance aligns at 1.3598 (high Feb5) followed by 1.3660 (high Feb.4) and finally 1.3711 (2013 high Feb.1).