EUR/USD sidelined around 1.1150 ahead of ECB SPF
- EUR/USD trades in the mid-1.1100s after the ECB event.
- ECB’s Survey of Professional Forecasters next on tap.
- Flash US Q2 GDP next of significance in the calendar.
EUR/USD is exchanging gains with losses on Friday around the 1.1150 region as market participants continue to digest yesterday’s ECB event.
EUR/USD looks to ECB, US data
Spot manages to keep the trade within the recent range following Thursday’s indecisive price action in response to the ECB meeting.
In fact, EUR had a volatile session yesterday, recording fresh 2019 lows just above 1.1100 the figure, climbing to the vicinity of 1.1190 afterwards and closing the day in pre-ECB levels in the 1.1140/50 band.
However, the European currency is expected to remain under pressure for the time being after the ECB left the door open for the announcement of new accommodative measures at the September meeting. It is worth recalling that the central bank still sees a low probability of a recession in the bloc despite acknowledging that the outlook has worsened in past weeks.
The ECB also changed its forward guidance and now expects rates to remain ‘at present or lower levels’ until at least H1 2020. Also, the Governing Council could announce another round of QE in September along with a tiered deposit rate system, all expected to weigh on the single currency and keep spot under the microscope.
Later in the day, the ECB’s SPF will unveil fresh projections, while advanced Q2 GDP figures should keep the attention on the buck later in the NA session.
EUR/USD levels to watch
At the moment, the pair is losing 0.01% at 1.1145 and faces immediate contention at 1.1101 (2019 low Jul.25) seconded by 1.1021 (high May 8 2017) and finally 1.0839 (monthly low May 11 2017). On the other hand, a break above 1.1236 (55-day SMA) would target 1.1286 (high Jul.11) en route to 1.1307 (200-day SMA).