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EUR/USD has popped higher as the ECB delivered just enough of an upside surprise, doing more QE than expected at €600 billion. Economists at TD Securities now await Largarde’s speech to see if the pair can surpass the 1.13 level.

Key quotes 

“The ECB delivered more than expected, increasing the size of the PEPP from €750 billion to €1350 bliion, and extended its targeted end date from Dec 2020 to June 2021. This would imply the ECB continues to buy at the current pace around €25 billion per week for the next year.” 

“With the ECB providing further accommodation, it continues to support the recovery and boost sentiment. While this may be somewhat counterintuitive, we think this should keep EUR/USD supported heading into the press conference.” 

“The market’s knee-jerk reaction has managed to take spot above the overnight high at 1.1257. We will need to see if Lagarde’s message provides enough upward momentum to propel us toward the next cluster of attractors north of the 1.13 mark.”