- Disappointing German/Euro-zone PMI prints prompted some fresh selling at higher levels.
- The ECB reiterated to keep rates at present or lower levels until inflation nears the target.
- Draghi’s final press conference as the ECB President eyed for some short-term impetus.
The intraday selling pressure around the shared currency picked up some pace post-ECB announcement and dragged the EUR/JPY cross further below the 121.00 handle, or fresh session lows.
Having failed to capitalize on an early European session bullish spike back closer to over three-month tops, the cross met with some fresh supply in reaction to yet another disappointing manufacturing/services PMI prints from Germany and the broader Euro-zone.
ECB decision turns out to be a non-event
The cross lows some additional ground after the European Central Bank (ECB), at its latest monetary policy update this Thursday, reiterated to keep rates at present or lower levels until inflation converges with its target of near but just below the 2% mark.
Meanwhile, the ECB also left interest rates and other key elements of its monetary policy unchanged and also confirmed to begin bond purchases of €20 billion per month from November 1st. In absence of any major shift in the stance, the decision turned out to be a rather non-event for the market.
Moving ahead, market participants now look forward to the post-meeting press conference – the final for the outgoing ECB President Mario Draghi – in order to grab some short-term trading opportunities. Draghi’s eight-year term ends on October 31 and he will be succeeded by the former IMF head, Christine Lagarde.
Technical levels to watch
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