EUR/USD Reverses Down from 1.20 After ECB’s Lagarde Speech
Skerdian Meta•Thursday, March 18, 2021•1 min read
EUR/USD turned bearish in January after being bullish since March last year. The price fell below 1.20, which turned into a resistance area. Earlier this week the price reversed down at 1.20 after a retrace higher and it did that again today, after the ECB (European Central Bank) president Lagarde held a press conference, confirming the increase in the PEPP programme.
Remarks by ECB president, Christine Lagarde
- Step-up in PEPP will become more visible over time
- Risks surrounding euro area growth outlook have become more balanced
- Downside risks remain in the near-term
- There is no room for complacency
- ECB to continue monitoring developments in the euro exchange rate
- PEPP will be implemented flexibly according to market conditions
- Step-up in the run-rate of PEPP will become visible when ascertained over longer time intervals (short-term disrupted by noise, such as lumpy redemptions)
- If favourable financing conditions can be maintained, don’t need to use full PEPP envelope if it is not exhausted
Not much of anything new here by Lagarde but her remarks on the pace of PEPP buying will keep the market interested in scrutinising every release over the next few months, to see if the central bank sticks to their “promise”. EUR/USD turned bearish again below 1.20 and has lost around 70 cents now.
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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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