Results of M. Draghi’s press conference

ECB Chairman M. Draghi confirmed that the statement about the possibility of increasing the quantitative easing were removed by a unanimous decision, as well as the fact that interest rates will remain at a low level. As a result, these comments provided space for the possibility of curtailing the incentive program, but there are no specific reasons for this yet.

Negative factor of the speech were concerns about the US trade relations, which caused concern of the head of the ECB. As a result, a new aggravation in trade relations may negatively affect the euro.

The press conference itself was very soft in terms of rhetoric, which had a negative impact on the dynamics of the single currency, which, in turn, confirms expectations for a correction in the EUR/USD pair. At the same time, significant levels of support include the following: 1.2350, 1.2310-00 and 1.2260-50, from which one should expect repulsion.

Fig. EUR/USD. The current price is 1.2370.

Hanzenko Anton