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EUR/USD muted post-ECB

FXStreet (Edinburgh) - The share currency remained apathetic after the ECB decision on Thursday, with EUR/USD hovering over 1.2640/45.

EUR/USD now waits for Draghi’s presser

Broadly in line with market expectations, the European Central Bank left its benchmark rate unchanged at 0.05% and the deposit rates at -0.2% in today’s meeting. Traders will now look to the more relevant press conference by Mario Draghi, where the ECB’s balance sheet will be the core of the debate amidst recent market chatter regarding the likeliness of the implementation of QE. Shaun Osborne, Chief FX Strategist at TD Securities, assessed, “The reaction to the announcements will be conditioned not only by the size, composition, and timing of the asset purchases under the program, but also by the likelihood of a QE program the market will extrapolate from those details if Mr. Draghi does not handicap those odds more explicitly”.

EUR/USD key levels

The pair is now advancing 0.14% at 1.2640 and a breakout of 1.2676 (high Oct.2) would aim for 1.2715 (high Sep.29) and then 1.2732 (10-d MA). On the downside, the immediate support aligns at 1.2571 (2014 low Sep.30) ahead of 1.2561 (low sep.6 2012) and finally 1.2502 (76.4% of 1.2042-1.3995).

ECB keeps rates unchanged after August cut

The Governing Council of the European Central Bank decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.20% respectively.
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