The EUR/USD pair continued its upward momentum this week, reaching a high of 1.0950 on Wednesday. As the pair remains in a consolidation phase, all eyes are on the European Central Bank (ECB) meeting for monetary policy updates.
Key Points:
- ECB Expected to Hold Policy Settings Unchanged: Market consensus suggests that ECB will maintain current policy rates.
- Lagarde’s Comments Could Impact Euro Valuation: ECB President Christine Lagarde’s statements on rate outlook will be closely monitored.
Euro Price Movement This Week:
The Euro showed strength against major currencies, with the New Zealand Dollar being the weakest performer.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.24% | +0.24% | -0.26% | +1.06% | -0.22% | -0.69% | -0.57% | +1.17% |
| EUR | +0.24% | – | +0.26% | -0.63% | +0.65% | +0.96% | +1.01% | -0.73% |
| GBP | -0.26% | +0.26% | – | -0.79% | +0.39% | +0.70% | +0.70% | -1.00% |
| JPY | +1.06% | -0.63% | +0.79% | – | +1.29% | +1.55% | +1.61% | -0.30% |
| CAD | -0.22% | +0.65% | -0.39% | +1.29% | – | +0.40% | +0.35% | -1.40% |
| AUD | -0.69% | +0.96% | -0.70% | +1.55% | -0.40% | – | +0.03% | -1.69% |
| NZD | -0.57% | +1.01% | -0.70% | +1.61% | -0.35% | -0.03% | – | -1.74% |
| CHF | +1.17% | +0.73% | +1.00% | +0.30% | +1.40% | +1.69% | +1.74% | – |
Analysis & Outlook:
The USD weakness has supported EUR/USD’s uptrend, with focus now on the ECB meeting. Lagarde’s stance on inflation and rate cuts will be crucial. Investors should monitor the post-meeting press conference for policy hints.
On the technical front, EUR/USD remains bullish within an ascending channel. Resistance levels are at 1.0950, 1.0980, and 1.1000, while support lies at 1.0900, 1.0870, and 1.0840.
Traders should also keep an eye on US Initial Jobless Claims data for potential impact on USD demand. A reading above 230,000 could weaken the USD further.
ECB FAQs:
- ECB’s Role: ECB manages Eurozone monetary policy to maintain price stability.
- Quantitative Easing (QE): ECB can use QE to stimulate the economy by purchasing assets.
- Quantitative Tightening (QT): QT is the reverse of QE and is undertaken during economic recovery.
Stay informed and watch for market reactions post-ECB decision for potential trading opportunities.