Eurusd Plunged By 0.30 Percent Towards 1.1750 Levels As The European Central Bank Pledged To Keep Interest Rates At Record Lows

Eurusd Plunged By 0.30 Percent Towards 1.1750 Levels As The European Central Bank Pledged To Keep Interest Rates At Record Lows

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  • 2021, 26 July

Brief:

Last week, EURUSD plunged by 0.30 percent towards 1.1750 levels while EURINR plunged by 0.56 percent as the European Central Bank pledged to keep interest rates at record lows for even longer to boost sluggish inflation and warned that the rapidly spreading Delta variant of the coronavirus poses a risk to the euro zone's recovery. The ECB currently works to achieve an inflation level of “below, but close to, 2%.” Going forward, the official inflation goal will become 2% with overshoots allowed. This dented sentiments pushing the shared currency lower.

However, sharp losses were capped as investors reacted to the robust release of German Manufacturing and Service PMI from the zone that came better than the expected levels. Moreover, business activity in the Euro-zone shot ahead at its fastest rate in 21 years in July as the economy went into full throttle with loosened COVID-19 restrictions.

Suggestion:

Buy above 1.1605 for 1.2350 and 1.2550

Else

Sell below 1.1605 for 1.1170 and 1.0725

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