The euro fell across the board following Mario’s speech yesterday at his last policy meeting. The now-former President reiterated September’s dovish policy language.
With Europe’s growth outlook stuck and inflation stuck ECB’s accommodative policy will remain unchanged at least until Lagarde’s first speech.
EUR/USD Test Below 1.11 Hints to Further Softening
Euro traders eyed the 1.11 round level following Draghi’s speech. Price action remained contained within certain limits but these were wide.
The currency pair is expected to remain under pressure with the next breakeven stops seen near 1.060 and then 1.1047. The latter is the 1.618 Fibonacci extension of the first corrective wave down to 1.11 test arear.
The pace of the decline should depend on how the dollar performs.
