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ECB holds rates, dollar bids weigh on EURUSD near key support

EURUSD tested the June 26 support around 1.13616 and bounced after the ECB left all three key rates unchanged and reiterated a data dependent approach.

Reported · Written up by our desk · Central Banks

Forexlive reports the ECB kept all three key interest rates unchanged, as widely expected, while ECB President Christine Lagarde said future decisions will remain firmly data dependent.

The ECB highlighted that inflation remains manageable without further tightening as long as energy driven pressures do not broaden through the economy, and it flagged incoming inflation, wage, and energy data before the September meeting as the main determinants for the next move.

Forexlive adds that the EURUSD reaction leaned bearish, with the pair trading lower ahead of and after the decision as broad based U.S. dollar buying supported the greenback.

Technically, sellers pushed EURUSD to the edge of support, with the June 26 low at 1.13616 holding after the day’s low reached 1.13635, and the focus shifts to 1.13238 if 1.13616 breaks and stays below.

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