OctaFX | OctaFX Forex Broker
Open trading account

EUR/USD drops to 1.2460 on Draghi

FXStreet (Edinburgh) - The shared currency is nose-diving on Friday, pushing EUR/USD well below 1.2500 following the dovish appreciations by ECB’s Draghi.

EUR/USD weaker on Draghi

The pair is reacting with a sharp pullback to fresh intraday lows around 1.2480 after President Draghi assessed the importance of the inflation to come back to the 2% target as soon as possible. Although he said that inflation expectations in the longer term are still consistent with price stability, in the short-term they remain ‘excessively low’. He also said that the European Central Bank will use all means to push consumer prices back to the 2% target, including an adjustment of the composition, pace and size of the asset purchases if needed. Furthermore, he stressed that the ECB could widen the channels of intervention if the situation so requires it.

EUR/USD key levels

At the moment the pair is losing 0.59% at 1.2469 with the next support at 1.2442 (low Nov.18) ahead of 1.2398 (low Nov.4) and finally 1.2394 (low Nov.11). On the flip side, a breakout of 1.2602 (high Nov.19) would aim for 1.2614 (low Oct.23) and then 1.2617 (high Oct.31).

Mario Draghi: "Stronger recovery is unlikely in the coming months"

In his opening keynote speech at the Frankfurt European Banking Congress, European Central Bank president Mario Draghi emphasised the risk that a too prolonged period of low inflation becomes embedded in inflation expectations, and that the firm anchoring of inflation expectations is critical under any circumstances.
Read more Previous

Gold outperforms in EUR terms

Gold prices did dip into the red in USD terms, although the metal has been resilient in the EUR terms owing to a sharp fall in the EUR/USD pair.
Read more Next
Start livechat