- ECB matched the broad consensus today, leaving rates unchanged.
- ECB surprised markets announcing new TLTROs.
- Attention now shifts to the usual press conference by President Draghi.
The shared currency depreciated further after the ECB decision today, dragging EUR/USD to fresh daily lows near 1.1270.
EUR/USD attention is now on Draghi’s presser
Spot remains on the defensive so far this week and has now intensified the downside after the ECB announced another round of fresh TLTOs, catching markets off guard. In addition, the central bank re-assesed its forward guidance and now sees interest rates on hold at least through the current year.
Furthemore, 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, all falling in line with prior surveys.
Looking ahead, attention should now shift to the usual press conference by President Mario Draghi and the subsequent Q&A session.
EUR/USD levels to watch
At the moment, the pair is losing 0.08% at 1.1297 and a breakout of 1.1326 (21-day SMA) would target 1.1381 (55-day SMA) en route to 1.1419 (high Feb.28). On the other hand, the next support aligns at 1.1274 (low Mar.7) followed by 1.1234 (2019 low Feb.15) and finally 1.1216 (2018 low Nov.12).
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