[EUR] Draghi Leads Euro Up 2019 0726

EUR/USD fou-hour chart, source:FXDD.com

Europe Central Bank, ECB froze its benchmark interest rate, Main Refinancing Rate to zero percent on Thursday, which was in line with market expectations. In the press release, ECB spoke the benchmark interest rate would be frozen till next early year or may be cut.

The market participants got the hint of interest rate cut in next September, and this event lowered the price of euro. The one of the major currency pair, EUR/USD which shows euro's value dropped to 1.1100, lowest record in recent two month.

And economy score in euro zone helped euro to fall, too.  German flash Manufacturing PMI released on Wednesday was 43.1 worse than expectation, 45.1, and German Ifo Biz Climate released on Thursday recorded 95.7. Market expected 97.1

But ECB president Mario Draghi showed his less dovish position and his press conference led euro's rebound. EUR/USD hit 1.11450, 0.07 percent rising at the end of New York Market.

Federal Reserve Chair Jerome Powell already suggested the benchmark-rate cut in next week, and market participants expect 25bp(basis point) or 0.25 percent point cut in next FOMC meeting on July 31. It makes dollar's diving but this material has been already reflected on the price.

The chart of eur/usd shows downward trend. We need to watch whether the trend will be changed by FOMC's decision. Euro keeps its rebounding in Asian market. It succeeded the rebounding but will face 120 Exponential Moving Average, possible resistance line. If it failed to break through the downward trend will be kept.


And the mail trend of currency pair may be confirmed after FOMC meeting on July 31.



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