Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

EUR/USD Downtrend Likely Over After ECB Pledges to Ramp-Up Bond Buying

Forex Mar 11, 2021 03:10PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – The euro jumped against the dollar and looks set to snap its two-week losing streak as experts suggest that the single currency's downward trajectory is likely over for now following the latest's European Central Bank monetary policy meeting on Thursday.

EUR/USD rose 0.48%, to $1.1983.

"On what we’ve seen today the EUR has stabilised and there’s been no meaningful drop below our 1.1850 outlined support in recent days," National Bank Australia said following the ECB's monetary policy meeting and press conference from central bank president Christine Lagarde.

The European Central Bank left rates unchanged at 0.00%, as expected, but did pledge to step up its pace of bond purchases to stem the rise in European bond yields and keep financial conditions steady.

"While the ECB today predictably left unchanged its main policy parameters, including its interest rates and the EUR1.85 trillion PEPP ceiling, the Governing Council's post-meeting statement went further than expected in addressing concerns about its willingness to tolerate the recent upwards shift in yields," Daiwa Capital markets said in a note.

The euro looks set to trade in a range between $1.22 and $1.23 before stepping up gains to reach $1.26 by mid-year as the vaccine-led recovery takes shape.

"[W]e don’t see reason to chase the [euro] lower, unless the situation on the European vaccine side really deteriorates," National Bank Australia added.  "Right now, it’s a case of Europe being a couple of months or so behind, but by the summer the northern hemisphere should be pretty much on the same page."

The sentiment on the eurozone recovery echo the view laid out by the bank on Thursday.

The ECB upped 2021 GDP to 4.0% from 3.9% in December, and forecast that growth rise above pre-pandemic levels in the middle of next year. For 2022, however, it cut its forecast to 4.1% from 4.2%.  

"Looking ahead, the ongoing vaccination campaigns, together with the gradual relaxation of containment measures – barring any further adverse developments related to the pandemic – underpin the expectation of a firm rebound in economic activity in the course of 2021,” Lagarde said.

EUR/USD Downtrend Likely Over After ECB Pledges to Ramp-Up Bond Buying
 

Related Articles

EU agrees rulebook for 'Wild West' crypto markets
EU agrees rulebook for 'Wild West' crypto markets By Reuters - Jul 01, 2022 1

By Huw Jones and Tom Wilson LONDON (Reuters) - The European Union on Thursday reached a provisional deal on the world's first set of comprehensive rules to regulate what one...

Dollar Edges Higher, Lifted by Safe Haven Demand
Dollar Edges Higher, Lifted by Safe Haven Demand By Investing.com - Jul 01, 2022 5

By Peter Nurse Investing.com - The U.S. dollar edged higher in early European trade Friday, trading close to the highs of the year on safe-haven demand as central banks take on...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email