The Euro is continuing its recovery in today’s trading session after yesterday’s news release by the European Central Bank where it announced its latest decision on monetary policy. As widely anticipated, the ECB left its rates on hold at 0.00% and pledged to continue the emergency bond-buying program (PEPP) at €1,850 billion until at least March 2022 but will continue at a moderately lower pace.
Policymakers also noted they are ready to use added that they are ready to use all instruments to ensure inflation stabilizes at their 2% target over the medium term.
ECB president Christine Lagarde also mentioned that the current inflation rate, which is above the central bank’s target, is expected to be temporary and added that developments moving forward with regards to the coronavirus will dictate the ECB’s movements.
Also helping the Euro’s recovery today was the release of CPI figures from Germany, which hit the market at 3.4% which was in line with analysts’ expectations and shows that Europe’s biggest economy continues to maintain its recovery following the pandemic.
On the chart we can see that the Euro retains solid support at the $1.1817 level and has bounced solidly of this mark as we enter the European trading session today and now all eyes will be on the monetary speech by Christine Lagarde in around 2 hours.
Expectations are that the ECB president will remain optimistic about the prospects of the European economy moving forward and that should keep the Euro well supported as the trading week comes to a close.