EUR/USD: ECB release is not an upside catalyst for the euro – OCBC

EUR/USD is hovering above 1.20. The pair extended higher amid Lagarde’s presser but retraced lower subsequently. There are soundbites for both hawks and doves to take away but as the ECB is not leaning hawkish at this point, upside potential for the euro remains limited, per OCBC Bank.

See: EUR/USD to surge towards 1.2349 and beyond amid a tone of quiet transformation – DBS Bank

Lagarde gave very little in terms of concrete policy direction

“There are bits to take away from the ECB meeting for both EUR/USD bulls and bears, but the failure to come out net-hawkish (in our opinion) should cap the immediate topside for the pair.”

“Near-term, the focus shifts to global preliminary PMIs later on Friday for a gauge of how EZ economic activity held out during the latest round of virus resurgence.”

“The 1.2000 to 1.2080 range is still governing, but with upside momentum fading.”