The European Central Bank, left interest rates unchanged, as expected. QE program has continued until December 2017 with monthly asset purchases of €60 bln.
The ECB Governor Mario Draghi responded to questions from the press conference, with key headlines, found below:
- He sees rates at the present level well past the end of QE
- QE will run until ECB sees sustain inflation pickup
- Monetary policy has continued to secure very favorable financing conditions needed
- Draghi says risks to growth are broadly balanced
- Measures underline inflation remains low
- Core inflation to rise gradually over mid-term
- ECB measures support borrowing conditions significantly
- Inflation gains conditional on stimulus.
- ECB took stock of continued improvement in economy
- Headline inflation to be volatile in coming months
- ECB did not discuss BOJ-style policy for Euro area
- Tighter financing conditions last thing ECB wants
EUR/USD - After the ECB press conference, the EUR/USD pair rose significantly and it is trading above the 1.1540 key level and If the price is able to sustain above 1.1540 on a four-hourly basis, the bullish action may gain more momentum. In this case, the resistance level will be at 1.1630, On the other hand, if the price drops below 1.1540 again, the next support level will be at 1.1445.
Support: : 1.1540 – 1.1445
Resistance: 1.1630
GOLD -
The Gold price is still trading above the 1236 support level. In the event that the price rises above 1236, we will follow resistance level at 1255. On the other hand, if the price drops below 1236, the next support level will be at 1226.
Support: 1236 – 1226 –1210
Resistance: 1255 – 1273 – 1286