The Euro was falling too fast. Overview for 24.01.2020
On Friday morning, the major currency pair is moving close to its six weeks low and may yet resume trading downwards.
EURSUD had a very stressful Thursday, that’s why it remains under pressure on Friday as well. The current quote for the instrument is 1.1048.
Yesterday, the European Central Bank had its first meeting this year, where all key aspects of its monetary policy were left intact. However, the regulator announced that it had revised the purposes and goals of the monetary policy and the ways to achieve them.
It seems like the ECB is ready to change its policy for the first time since 2003. In general, it’s not surprising at all: Christine Lagarde inherited a pretty stable system from the former governor, which however no longer shows the expected results. So, it would be okay to adapt the system to new market conditions, but in this case, the regulator will have to revise targets of its key macroeconomic indicators (mostly, downwards) and the tools to achieve them as well.
According to Lagarde, the ECB is going to take into account climate risks. Her comments were pretty smooth, that’s why market players decided that the regulator was ready to expand, theoretically, the QE program. However, nothing was said about this.
Most likely, the ECB is looking forward to boosting the inflation, but it will be very difficult without expanding the QE.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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