Euro holds steady after the mild ECB interest rate decision.
The euro rose slightly after the European Central Bank (ECB) delivered the latest interest rate decision. As expected, the bank left interest rates unchanged. It left the deposit facility rate at -0.50% and the marginal lending facility rate at 0.25%. The bank also decided to continue with its asset purchases as it steers the European economy through the worst crisis in modern history. It also pledged to continue with this support until the inflation rate rises and the unemployment rate falls. Still, analysts expect that the bank will send signals about the tapering of asset purchases in the next few months.
Global stocks rallied as fears of the rising number of coronavirus cases started to wane. In Europe, the FTSE 100 index rose by 0.15% after the relatively positive results by Taylor Wimpey. Aviation-related companies like Rolls-Royce, IAG, and Melrose Industries were among the best performers. In Germany and France, the DAX and CAC indices rose by 0.70% and 0.85%, respectively. In the United States, futures tied to the Dow Jones and Nasdaq 100 wavered ahead of key results by companies like Danaher, Intel, and AT&T.
Cryptocurrencies were in the red today as the recent enthusiasm of the Coinbase listing waned. They also declined after a major Turkish crypto exchange disappeared. This happened a week after Turkey announced that it would ban cryptocurrencies by end of the month. This was a major event since the exchange had more than $1.2 billion of crypto volume. Among the biggest losers today were Bitcoin, Dogecoin, XRP, and Bitcoin Cash that dropped by more than 1%. Ethereum, Uniswap, and Solana were exceptions as they bounced back.
The USD/CAD pair was relatively volatile as the market continued to react to the latest BOC interest rate decision. The pair declined to a low of 1.2475, which was substantially below the lower side of the bearish flag pattern that is shown in pink. It then rebounded and moved back to the flag. On the hourly chart, it is still below the 25-day moving average while the signal and histogram of the MACD have made a bearish crossover. In the near term, the pair may resume the downward trend as bears attempt to move below 1.2460.
The EUR/USD pair rose after the ECB interest rate decision. On the hourly chart, the pair remains between the ascending pink channel. It is also slightly above the 25-day and 15-day weighted moving averages (WMA). The signal and main line of the MACD have also moved above the neutral line while the on-balance volume has continued rising. Therefore, the pair may continue rising as bulls target the next key resistance at 1.2080. This could happen as Christine Lagarde delivers her press conference.
The ETH/USD pair has been in a strong upward trend after it dropped sharply on Sunday. On the four-hour chart, the pair is forming a V-shaped recovery and is slightly below its all-time high. It is at the upper side of the Bollinger Bands and above all moving averages. The pair may keep rising as bulls target its all-time high of 2,550.