EUR/USD moves little post-ECB, flat-lined near 1.1400 mark

• EUR/USD extended its consolidative price action and moved little post-ECB.
• The ECB maintained the status-quo and led key interest rates unchanged.
• The focus now shifts to the post-meeting press conference, US macro data.

The EUR/USD pair held steady in the neutral zone, just above the 1.1400 mark and had a rather muted reaction to the latest ECB monetary policy update.

The European Central Bank – at the July monetary policy meeting held this Thursday – decided to maintain the status quo and left key interest rates unchanged. Given that the decision was in line with market expectations, the announcement did little to provide any meaningful impetus.

However, hopes that the European leaders will make progress in agreeing on a roughly €1.85 trillion package continued lending some support to the shared currency. The stimulus package includes €750 billion in funds aimed at aiding the recovery of the region’s worst-hit economies.

However, the global risk sentiment was being weighed down by concerns over worsening US-China relations and the ever-increasing coronavirus cases. This, in turn, underpinned demand for the safe-haven US dollar and might act as a key factor capping any meaningful gains for the EUR/USD pair.

Market participants now look forward to the post-meeting virtual news conference, where comments by the ECB President Christine Lagarde might influence the common currency and infuse some volatility around the euro pairs.

Apart from this, investors will also confront some important US macro releases – monthly Retail Sales, Philly Fed Manufacturing Index and Initial Weekly Unemployment Claims. The data might influence the USD price dynamics and further contribute to produce some short-term trading opportunities.

Technical levels to watch