The day after Draghi
Yesterday, Mario Draghi announced a new round of long-term and favorable conditions loans for the banking system.
The new series of operations will be launched from September 2019 and will end in March 2021. The operations will be carried out every three months and each will have a two-year maturity.
In addition, the ECB has confirmed what analysts had expected despite the last meeting at the end of 2018 (which suggested that in September 2019 there could have been a rise in rates), that is: there will be no change in the monetary policy adopted in the last years, keeping fixed interest rates at least until the end of 2019, but it is very likely that this policy will also be maintained during 2020.
All of this, leaves macro analysis unchanged, it is likely that for the next few weeks the EURUSD will be laterally between 1.12 and 1.14, and then proceed in its main bearish trend with final target at 1.08 as soon as Powell resume monetary tightening.
However, we expect a devaluation of the US dollar until March 20: our first target is 1.14 in the short term and then the area between 1.10 and 1.08.
The new series of operations will be launched from September 2019 and will end in March 2021. The operations will be carried out every three months and each will have a two-year maturity.
In addition, the ECB has confirmed what analysts had expected despite the last meeting at the end of 2018 (which suggested that in September 2019 there could have been a rise in rates), that is: there will be no change in the monetary policy adopted in the last years, keeping fixed interest rates at least until the end of 2019, but it is very likely that this policy will also be maintained during 2020.
All of this, leaves macro analysis unchanged, it is likely that for the next few weeks the EURUSD will be laterally between 1.12 and 1.14, and then proceed in its main bearish trend with final target at 1.08 as soon as Powell resume monetary tightening.
However, we expect a devaluation of the US dollar until March 20: our first target is 1.14 in the short term and then the area between 1.10 and 1.08.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.