ECB Preview: Euro Strength and More Dovish Calls
Fiona Cincotta September 9, 2020 12:44 PM
The value of the Euro could be in focus as the ECB aims to address negative inflation and the until recently surging value of the currency.
Thursday 10th September
The value of the Euro could be in focus as the ECB aims to address negative inflation and the surging value of the currency.
The latest economic forecasts will be released at this meeting.
The ECB could acknowledge the strong rebound in the economy post lockdown, however they are also likely to remind of continued uncertainty. ECB members hitting the airwaves recently have shown that differences over the central bank’s economic assessment exist.
The EUR/USD is extending losses for a 6th straight day on Wednesday. The pair is testing near term support at $1.1750 as it continues to pull back from the 2 year high of $1.20 reached last week.
A break through this level could see losses extended to $1.17 the confluence of a horizonal support and 50-day moving average, a level which has offered support since late July. A break through here could open the doors to US$1.15.
On the flip side resistance can be seen around $1.1860 prior to $1.1970.
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