As expected, the European Central Bank decided to keep key rates unchanged in October meeting. EURUSD hasn’t reacted to the statement as it awaits Draghi for his last appearance as ECB Governor.
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Some of the takeaway messages of the ECB statement:
Sees rates at present or lower levels until near inflation goal
Continue with bond purchases for as long as needed
Stop bond purchases shortly before raising rates
Reinvest QE debt for extended period of time after first rate hike
Confirms to begin bond purchases of €20 billion per month starting from 1 November
EURUSD hasn’t reacted at all to the statement as investors await Draghi’s press conference in around 30 minutes. The major pair moved lower this morning following the weaker-than-expected PMI from the Eurozone and Germany.
The key resistance (the ascending trend line) is located at 1.1180 while the 1.1110 handle will offer support to bulls in case Draghi comes out dovish.