Be Prepared To Trade EURO Parity Ahead of ECB’s Interest Rate Decision, 50+ PIP Volatility Expected; Dec 10, 2020
ECB’s Main Refinancing Rate
Today is very important day for the Euro Zone as ECB will announce Interest Rate Decision as well as EU Economic Summit will provide further directions to the Euro parity. The expected time of the Interest Rate decision is at 1245 GMT/1815 IST followed by ECB Press Conference at 1330 GMT/1900 IST.
During ECB’s last Meeting in late October, ECB President Lagarde announced to utilize all the available instruments at their next policy meeting. This is the reason market is widely expecting additional funding announcement from the ECB. Markets expect ECB’s Pandemic Emergency Purchase Program will get raise by 400 to 600 billion and may extend it to the end of 2021/2022.
Let’s see how EURO has reacted during the previous data release:
EUR/USD: The euro trades marginally higher ahead of ECB’s interest rate decision. The pair made intraday high at $1.2100 and low at $1.2073 mark. A sustained close above $1.2140 tests key resistances at $1.2176, $1.2200, $1.2240, $1.2267 and $1.2310 mark respectively. On the other side, a sustained close below $1.21 will target key supports around $1.2050, $1.1970, $1.1900, $1.1850, $1.1802, $1.1770, $1.1740, $1.1672, $1.1640, $1.1590, $1.1540 and $1.1526 marks respectively.
Take a look and do trade wisely!