The euro fell sharply on Tuesday. ECB President Draghi announced fresh stimulus and a possible rate cut, as early as July. Draghi said that some of the measures that the ECB could take include extending the time frame for the next rate hike and even cutting the ECB rates. The comments came during Draghi’s speech at the ECB conference in Sintra, Portugal.
Will the EURUSD Drop Further?
After the failure to hold on to the support at 1.1200, the single currency broke past this level, falling to a two-week low. Price action could remain somewhat volatile ahead of today’s Fed meeting. With the markets already discounting a dovish Fed, the element of surprise could dictate the flows into the USD. EURUSD’s next main support is seen at 1.1150 to the downside.
