ECB and EUR / USD prices, news and analyzes:
- The ECB leaves all policy measures unchanged.
- EUR / USD remains weak and tests 1.1700
- The sentiment of IG traders suggests lower prices.
The European Central Bank left all monetary policy parameters intact at today’s meeting. The main refinancing rate remains unchanged at 0.00%, the deposit facility has remained intact at -0.5% and the marginal lending rate remains at 0.25%. The PEPP envelope of 1,350 billion euros has also remained intact and the APP remains at 20 billion euros per month.
ECB President Christine Lagarde will add further comments on today’s decision during the 13:30 GMT press conference. Traders should remain vigilant to discuss any future plans to increase PEPP or PSPP programs, the central bank’s reflections on the abnormally low level of inflation, the current level of the euro, and risks to the economic outlook.
Friday’s economic calendar also features high-profile releases, including the Eurozone inflation estimate for October and the first look at Q3 GDP for the single bloc. For all economic data and events on market developments, please consult theDailyFX Calendar.
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EUR / USD has been weak all morning before the ECB, with the US dollar taking a small offer and attempting to break below 1.1700. This first attempt was quickly rejected but an accommodating press conference by President Lagarde and a slightly better-than-expected US flash release in the third quarter – 33.1% vs. 31% expected – could see this level tested again in the short term.
EUR / USD price table in 5 minutes (February – October 29, 2020)
of customers are net long.
of customers are net short.
IG Retail trader The datashows that 39.09% of traders are net. We generally take a vexing view of crowd sentiment, and the fact that traders are net-short suggests that EUR / USD prices may continue to rise. Howeverrrecent changes in sentiment are warning that the current EUR / USD price trend may soon reverse lower despite traders staying net-short.
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