The volatility around the common currency now has accelerated, with EUR / USD to navigate the range 1.1010 / 60.
EUR / USD watchers Draghi
Point keeps his composure after President Draghi stressed that the current QE program will run until March 2017 unless, while rates will remain at low levels “beyond the horizon”.
Draghi said the recovery should continue at a moderate pace in the region, while the recent ECB measures remain favorable domestic demand.
Again, he reiterated that the risks to growth in the euro area remains tilted to the downside – including Brexit – and it is expected that growth in Q2 at a slower pace than Q1. As for inflation, consumer prices seen rising further in the next year and 2018.
President Draghi said the ECB remains ready to act if necessary.
In a secondary role today, initial claims for US have reached 253K last week, bringing the 4-week average of 259K to 257.75K, whle index Philadelphia Fed Manufacturing has disappointed the markets for the month ongoing, falling to -2.9 from 4.7.
EUR / USD levels to see
The couple is now gaining 0.25% to 1.1042 and a break of 1.1082 (200-day moving average) would target 1.1166 (high Jul.14) en route to 1.1201 (55-day SMA). On the other hand, immediate support lines up at 1.0979 (low Jul.20) followed by 1.0913 (post-Brexit low Jun.24) then 1.0820 (low Mar.10).