Forex: EUR/USD muted on ECB inaction

The single currency remained indifferent after the ECB failed to deliver any surprises in today’s statement, leaving the lending benchmark intact at 0.75%, matching the broader consensus.

Market participants would now focus their attention on the upcoming press conference by President Mario Draghi.

As of writing, the cross is advancing 0.40% at 1.3019 with the next resistance at 1.3075 (high Mar.5) ahead of 1.3101 (high Mar.1) and then 1.3143 (Tenkan Sen line).
On the downside, a break below 1.2970 (low Mr.7) would bring 1.2966 (2013 low Mar.1) en route to 1.2929 (low Dec.11).

Mar 7, 2013

EMU: ECB keeps policy unchanged, rate at 0.75%

The ECB decided to keep its interest rate at 0.75%, disappointing some analysts that were expecting a rate cut. “At today’s meeting the Governing Council of the ECB 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 0.75%, 1.50% and 0.00% respectively”, said the statement.

Forex: EUR/JPY at highs after ECB

The shared currency edged slightly higher versus the yen and touched a fresh daily high after the European Central Bank decided to keep its main rate unchanged at 0.75% as expected.