Market news

16 December 2021

EUR/USD climbs to one-week high, around mid-1.1300s post-ECB decision

  • The post-FOMC USD selling pushed EUR/USD higher for the second successive day.
  • The lack of fresh dovish signals from the ECB provided an additional boost to the pair.
  • Investors now look forward to the post-meeting press conference for a fresh impetus.

The EUR/USD pair added to its intraday gains and climbed to a one-week high, closer to mid-1.1300s after the European Central Bank announced its policy decision.

The pair built on the previous day's post-FOMC bounce from the 1.1220 region and gained some positive traction for the second successive day on Thursday. The ongoing US dollar retracement slide from the vicinity of a 16-month top provided a modest lift to the EUR/USD pair, which was further underpinned by the lack of fresh dovish signals from the ECB.

As was widely expected, the ECB left its monetary policy settings unchanged at the end of the December policy meeting. In the accompanying statement, the ECB announced that it will discontinue net asset purchases under the PEPP in March 2022. This, in turn, was seen as another factor that inspired the euro bulls and collaborated the intraday move up.

Market participants now look forward to the post-meeting press conference, where comments by ECB President Christine Lagarde could provide some impetus to the EUR/USD pair. Traders will also take cues from the US economic docket, featuring the Initial Weekly Jobless Claims, Philly Fed Manufacturing Index, Industrial Production and flash US PMIs.

Technical levels to watch

 

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2022 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location