EUR/USD back below 1.0600 post-ECB, looks to Lagarde
- EUR/USD returns to the sub-1.0600 area on Thursday.
- The ECB raised rates by 50 bps at its event.
- Attention now shifts to Lagarde’s press conference.
EUR/USD fades the initial uptick to the 1.0630/35 band and returns to the sub-1.0600 region in the wake of the ECB decision on rates.
EUR/USD now focuses on Lagarde
EUR/USD leaves behind the initial optimistic trade and refocuses on the area below the 1.0600 mark after the ECB delivered a 50 bps rate raise at its event on Thursday.
Indeed, the central bank raised the interest rate on the main refinancing operations, the interest rate on the marginal lending facility and the deposit facility to 3.50%, 3.75% and 3.00%, respectively.
Following the updated macroeconomic projections, the ECB expects the economy to expand 1.6% in 2024 and 2025, while inflation is seen averaging 5.3% this year and 2.9% in 2024.
The ECB refrained from signaling futures interest rate moves, while it sees inflation at still high levels.
Investors will now closely follow the usual press conference by Chair Lagarde.
EUR/USD levels to watch
So far, the pair is advancing 0.12% at 1.0589 and the breakout of 1.0759 (monthly high March 15) would target 1.0804 (weekly high February 14) en route to 1.1032 (2023 high February 2). On the other hand, the next support emerges at 1.0516 (monthly low March 15) seconded by 1.0481 (2023 low January 6) and finally 1.0323 (200-day SMA).