Euro Zone ECB Refinancing Rate Decision
Today the key event for the day will be Euro Zone’s Interest Rate decision followed by Press Conference. It’s the primary tool the ECB uses to communicate with investors about monetary policy. It contains the outcome of their decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it discusses the economic outlook and offers clues on the outcome of future decisions.
Today markets expect the ECB to keep the interest rate unchanged. On the other side, sharply rising bond yields have increased the pressure on the ECB to take further actions to tackle the increase. The another key concern for the Euro Zone is very slower vaccine roll out and many parts of the Euro Zones are still facing strict restrictions due to sever covid infection rise. If ECB will put more concern over rate fluctuations and further bond purchases, then Euro likely to depreciate. Alternatively, If ECB maintains hawkish tone and hoping for the speedy economy recovery then Euro will strengthens against major peers.
Let’s see how EURO has reacted during the previous data release:
EUR/USD: The euro strengthens sharply ahead of ECB’s Interest Rate Decision. Today triple EMA on a day confirms the bearish trend but H1 chart signals up trend in short run. The pair made intraday high at $1.1968 and low at $1.1915 mark. A consistent close above $1.1974 on H1 chart requires for the upside rally. Alternatively, a sustained close below $1.1918 on H1 will check further supports.
Key Resistances: $1.1974, $1.2001, $1.2044, $1.2068
Key Supports: $1.1915, $1.1875, $1.1838, $1.1802, $1.1777
Take a look and do trade wisely!