Eurusd Plunged By 0.30 Percent Towards 1.1750 Levels As The European Central Bank Pledged To Keep Interest Rates At Record Lows
- Weekly Signals
- 2021, 26 July
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.
Buy above 1.1605 for 1.2350 and 1.2550
Sell below 1.1605 for 1.1170 and 1.0725