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ECB monetary policy decision overview

The European Central Bank (ECB) is scheduled to announce its latest monetary policy decision later today at 12:45 GMT today and will be followed by the usual post-meeting press conference at 13:30 GMT. The central bank is widely expected to maintain status-quo and leave monetary policy rates unchanged. Hence, the key focus will be on the updated economic projection and the post-meeting press conference.

Given that the recent economic developments since the January meeting have turned out weaker than expected, the ECB Governing Council is expected to downgrade its projections for economic growth and inflation forecasts, leaving the central bank in a wait-and-see mode for longer.

As Mario Blascak, FXStreet’s own European Chief Analyst writes: “While the main message from the ECB is expected to remain broadly unchanged from January with the Governing Council echoing the risks to the Eurozone growth outlook tilted top the downside, the uncertainty is likely to hold the policymakers back in terms of launching another stimulus program just three months after the asset purchasing program ended last December.”

How could it affect EUR/USD?

Ahead of the key event risk, Yohay Elam – FXStreet’s own Analyst offers some important technical levels for trading the major: “Support awaits at 1.1290 which supported EUR/USD earlier in the week. 1.1275 was a low point in mid-February and 1.1250 cushioned the pair beforehand. 1.1235 is the 2019 low and 1.1215 was the trough in 2018.”

“1.1310 is fought over. The pair found support at this level early in the month. 1.1325 was a swing high on Wednesday while 1.1345 held it down beforehand. 1.1360 is where the 200 SMA meets the price. Far above, 1.1410 and 1.1420 are eyed,” he added further.

Key Notes:

   “¢    ECB Preview: Lower macro projections set the stage for a prolonged period of policy stand-off

   “¢    ECB Preview: 11 Major Banks expectations from March meeting

   “¢    EUR/USD Forecast: Dreading Draghi, but these 3 ECB drivers could drive the Euro higher

About the ECB interest rate decision  

ECB Interest Rate Decision is announced by the European Central Bank. Usually, if the ECB is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the EUR. Likewise, if the ECB has a dovish view on the European economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.