- EUR/GBP fell to fresh multi-week lows in reaction to the ECB’s latest policy update.
- The ECB left rates unchanged and showed readiness to ease monetary policy further.
- Market participants now look forward to the post-meeting presser for a fresh impetus.
The EUR/GBP cross lost some additional ground and dropped to fresh multi-week lows, around the 0.8675 region, post-ECB announcement.
The cross failed to capitalize on its early uptick instead met with some fresh supply near the 0.8740-50 region following the release of dismal Eurozone GDP report, which showed that the economy contracted at the fastest pace in the history.
The shared currency remained depressed against its British counterpart after the European Central Bank (ECB) – at its April monetary policy meeting held this Thursday – showed readiness to increase the size of its QE purchases.
The ECB also said that it will conduct asset purchases, adjust the composition, by as much as necessary and for as long as needed until it judges that coronavirus crisis phase is over, but in any case, at least until the end of the year.
Moving ahead, market participants now look forward to the post-meeting press conference, where comments by the ECB President Christine Lagarde’s might infuse some fresh volatility around the euro crosses.
Technical levels to watch
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