FXStreet (Edinburgh) - The shared currency remains apathetic after the ECB rate decision, with the EUR/USD hovering over the 1.3380/75 band.
EUR/USD now focuses on Draghi
The central bank commanded by Mario Draghi left its monetary policy unchanged in today’s meeting, with the refi rate intact at 0.15%, banging on previous estimates. Market participants now turn their attention to the subsequent press conference by Draghi, with the majority of opinions pointing to a dovish tone, resuming the downward pressure on spot. “Today’s presser presents relatively low and balanced risks for EUR, as Draghi could either downplay the recent softness in the data and favor better surveys that signal improving momentum into Q3 or, conversely use geopolitics and weak inflation to reiterate they are ready to act if needed. If he chooses to sound concerned about the inflation outlook, EURUSD will test the low 1.33s, and a push higher into the low1.34s is likely if he strikes a more optimistic tone”, noted Shaun Osborne, Chief FX Strategist at TD Securities.
EUR/USD levels to consider
As of writing the pair is losing 0.07% at 1.3372 with the immediate support at 1.3333 (low Aug.6) followed by 1.3318 (low Nov.8 2013) and finally 1.3317 (weekly cloud base). On the upside, a break above 1.3425 (high Aug.5) would aim for 1.3433 (high Aug.4) and then 1.3445 (high Aug.1).