The euro is under the pressure after Draghi’s press conference
The ECB President, M. Draghi During his speech noted that the euro zone’s monetary policy remained unchanged, which was expected, arguing that a soft monetary policy is necessary to achieve a target inflation rate of 2%, which is currently below the goal, but close to it. This monetary policy will be maintained until the summer of 2019.
The comments on relatively weak signals, from which they expected more, caused a significant decline in the euro. Geopolitical uncertainty and protectionism threats continue to be risk factors. Also, the euro was negatively affected by the data on the reduction of inflation to 1.6% from 1.9%. It is worth noting the slowdown in the growth of the money supply to 3.7% from 3.9%. In sum, with weak statistics and dovish tone, the press conference can be considered a negative factor for the euro. At the same time, the further decline of the euro will be limited, since these statements do not have a long-term impact.
EUR/USD has updated a low at the level of 1.1305, after which it moved to the correction. At the same time, the general sentiment regarding the euro remains very restrained, as indicated by the preservation of the side channel. Thus, levels: 1.1330 and 1.1300 are significant support. The side dynamics of the pair is likely to continue.
EUR/USD chart. Current price – 1.1360
Read also: “Scalping is a strategy for active traders”
Hanzenko Anton
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- Another “Top 5” books on trading. It can’t be too much information!
- Long-term investment in currency pairs! The EUR/JPY pair!
- Geopolitical risks for the beginning of 2019! (Part 3)
Current Investment ideas: