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4 Dec 2014
EUR/USD eyes 1.2400 on hawkish Draghi
FXStreet (Edinburgh) - President Draghi’s press conference is probing to be EUR-supportive so far, lifting EUR/USD to fresh highs beyond 1.2380.
EUR/USD boosted by ECB
The pair is reacting positively to the ECB statement so far, reaching the vicinity of 1.2390 after testing fresh 2014 lows around 1.2280. The central bank emphasized its efforts to reach the size of its balance sheet prevailing back in 2012, adding that the Council remains unanimous in implementing further easing measures if needed; it also argued that it will reassess the current stimulus package in the next quarter. The ECB showed concerns regarding the current slump in crude oil prices and their impact on the inflation figures in the euro area, and it will remain vigilant on this matter. The staff revised lower its GDP forecasts for 2015 and 2016 to 1.0% and 1.5% from 1.6% and 1.9% in September, respectively, however it noted that the abrupt decline in oil prices has not been considered. Regarding the inflation, the staff sees consumer prices gauged by HICP rising to 0.7% in 2015 and 1.3% in 2016.
EUR/USD relevant levels
As of writing the pair is up 0.64% at 1.2390 and a breakout of 1.2419 (low Dec.1) would aim for 1.2449 (21-d MA). On the other hand, the immediate support aligns at 1.2288 (low Aug.17 2012) ahead of 1.2256 (low Aug.16 2012) and finally 1.2242 (low Aug.10 2012).
EUR/USD boosted by ECB
The pair is reacting positively to the ECB statement so far, reaching the vicinity of 1.2390 after testing fresh 2014 lows around 1.2280. The central bank emphasized its efforts to reach the size of its balance sheet prevailing back in 2012, adding that the Council remains unanimous in implementing further easing measures if needed; it also argued that it will reassess the current stimulus package in the next quarter. The ECB showed concerns regarding the current slump in crude oil prices and their impact on the inflation figures in the euro area, and it will remain vigilant on this matter. The staff revised lower its GDP forecasts for 2015 and 2016 to 1.0% and 1.5% from 1.6% and 1.9% in September, respectively, however it noted that the abrupt decline in oil prices has not been considered. Regarding the inflation, the staff sees consumer prices gauged by HICP rising to 0.7% in 2015 and 1.3% in 2016.
EUR/USD relevant levels
As of writing the pair is up 0.64% at 1.2390 and a breakout of 1.2419 (low Dec.1) would aim for 1.2449 (21-d MA). On the other hand, the immediate support aligns at 1.2288 (low Aug.17 2012) ahead of 1.2256 (low Aug.16 2012) and finally 1.2242 (low Aug.10 2012).