EURUSD Goes Up and Down On Draghi’s Presser

EURUSD has moved up and down during Mario Draghi’s presser as investors look for clues from the outgoing ECB Governor.

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Main updates from the Draghi’s presser:

  • The main risk is a downturn in the economy
  • Lagarde didn’t take part in discussions but she was there
  • I don’t think markets misread our reaction function; they showed they perfectly understood it
  • Everything since Sept indicates that our stance as justified
  • We’ve had data continue to show a deterioration in the economy
  • The manufacturing PMI is at the lowest since 2012
  • ECB determination to reach its mandate always prevails
  • Prime commercial real estate valuations are particularly overstretched

When asked about the end of his mandate, Draghi said that he “feels like someone who tried to comply with a mandate in the best possible way”.

For more on the ECB statement, see here – ECB keeps rates unchanged, EURUSD lower ahead of Dragh

The pair has climbed up to 1.1153 during Draghi’s press conference, however it quickly rotated back to the 1.1120s when Draghi started addressing the Q&A session. The intraday resistance remains at 1.1180 while the support is located around the 1.1110 handle.

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EURUSD hourly chart

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