EUR/USD holds at the upper end of its weekly range

The European Central Bank left its monetary policy unchanged, as expected. The EUR/USD pair peaked at 1.1974 with the announcement, currently retreating and trading in the 1.1950 price zone, as ECB’s Lagarde cools yields further, FXStreet's Chief Analyst Valeria Bednarik briefs.

Key quotes

“Partially overshadowing optimism, news indicated that some EU countries suspended vaccinations with the AstraZeneca shot after some cases of blood clots were reported. Meanwhile, the distribution of covid vaccines in the area remains sluggish, and more delays are expected, all of which will undermine the region’s economic comeback.”

“The ECB maintained rates unchanged, alongside the size of PEPP, although policymakers announced that bond purchases over the next quarter to be conducted at a significantly higher pace than during the first months of this year.

“The US published Initial Jobless Claims, which resulted at 712K in the week ended March 5, better than anticipated.”

“The 4-hour chart shows that the 20 SMA hovers around a Fibonacci support level at 1.1885, while technical indicators ease within positive levels, far from suggesting an upcoming decline.”