- Spot keeps the selling bias unchanged albeit off session lows.
- EMU, German flash manufacturing PMIs disappointed estimates.
- ECB left its rates unchanged at today’s meeting.
The single currency keeps the offered tone so far today, with EUR/USD navigating the mid-1.1300s in the wake of the ECB decision on rates.
EUR/USD now focused on Draghi’s press conference
The pair remains within the negative territory after the ECB’s Governing Council left its monetary conditions unchanged at today’s meeting, falling in line with prior surveys.
In fact, 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 -0.40%, respectively.
The central bank added that rates will remain in these levels at least through this summer, while it will reinvest QE debt for extended period following the first rates hike.
Moving forward, investors will now closely follow Draghi’s presser and the subsequent Q&A session.
What to look for around EUR/USD
Recent poor prints from advanced PMIs in core Euroland added to the idea that the region is transiting a slowdown period. Furthermore, investors will now look to the views from the Council regarding this scenario as well as any discussions of its impact on economic growth and inflation.
EUR/USD levels to watch
At the moment, the pair is down 0.26% at 1.1351 facing the next support at 1.1330 (low Jan.24) followed by 1.1323 (200-week SMA) and finally 1.1306 (2019 low Jan.3). On the flip side, a break above 1.1396 (10-day SMA) would target 1.1415 (21-day SMA) en route to 1.1442 (38.2% Fibo of the September-November drop).
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