- EUR/USD remains firm and well above the 1.2100 mark.
- ECB left its key rates unchanged, as well anticipated.
- Attention now shifts to Lagarde’s usual press conference.
The upside momentum in the single currency stays unchanged on Thursday, with EUR/USD hovering around the 1.2150 region following the ECB’s interest rate decision.
EUR/USD now looks to Lagarde
EUR/USD navigates the 1.2150 area after the ECB’s Governing Council left its monetary status quo on hold at Thursday’s event, matching the previous expectations.
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 -0.50%, respectively.
The central bank sees the interest rate at current/lower levels until inflation gets closer to the bank’s target. In addition, the ECB keeps its pace of bond purchases at €20 billion per month and confirms the PEPP at €1.85 trillion.
Looking ahead, investors will now closely follow the usual press conference by Chief Lagarde and the subsequent Q&A session
EUR/USD levels to watch
At the moment, the pair is up 0.41% at 1.2154 and a break above 1.2349 (2021 high Jan.6) would target 1.2413 (monthly high Apr.17 2018) en route to 1.2476 (monthly high Mar.27 2018). On the flip side, the next support is located at 1.2062 (55-day SMA) seconded by 1.2053 (2021 low Jan.18) and finally 1.1976 (50% Fibo of the November-January rally).
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