Euro is at the crossroads. Overview for 11.12.2020
At the end of the week, EURUSD looks ambiguous: it is declining slightly but the market remains optimistic. The current quotation is 1.2128.
On its December conference, the European Central bank kept the interest rate at zero, as forecast. However, the PEPP was extended by 500 billion EUR to 1850 billion EUR. The ECB also decided to extend the net purchase horizon inside the PEPP until March 2022.
The ECB keeps the right to carry out net purchases until it decides that the mechanism can exhaust itself.
It is also known that the purposes of target purchases inside TLTROIII were somewhat changed. The program will work at least until summer 2022.
Next, the complex measures of softening the deposit rules. This is necessary for European banks to still be able to use the liquidity operations mechanisms.
The Euro even grew a bit after these decisions but lost the impulse and slumped further down.
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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