The ECB maintains a soft policy

The speech of the ECB head Draghi confirmed the market’s concerns about the ECB’s soft policy, pointing out that the rates remain at the current level for quite a long time. But the main negative factor for the decline for the euro is the ECB’s reluctance to bid farewell to the monetary stimulus program.

As a result, the pair EUR/USD tested the support at the level of 1.1740 and broke off on the correction of the euro. But, given the decline in the euro in crosses, the dynamics of this pair will remain descending and be limited to the existing downward trend from September this year. A significant level of support is still the levels: 1.1770 and 1.1740-30.

Recommended for reading: https://esterholdings.com/en/2017/10/24/geopoliticheskie-riski/ and https://esterholdings.com/en/2017/10/19/korrektsiya/

Hanzenko Anton