Euro Rallies As ECB Minutes Show Unanimous Agreement On Policy Measures
09 Abril 2020 - 05:21AM
RTTF2
The euro climbed against its key counterparts in the European
session on Thursday, after minutes from the European Central Bank's
recent meeting showed that policymakers agreed that a decisive
monetary policy response was required to counter the implications
of the coronavirus pandemic in the currency bloc.
Members said that a decisive monetary policy response was
required in the present circumstances, both to preserve the
monetary stance and to underpin the monetary transmission
mechanism, the minutes from March 11 and 12 showed.
Policymakers unanimously agreed with the package of monetary
policy measures, which includes offering additional LTROs to
provide immediate liquidity support to the euro area banking
system, applying more favourable terms to all TLTRO III operations
during the period from June 2020 to June 2021 and expanding
quantitative easing program by 120 billion euros.
The Governing Council members agreed that lowering the deposit
facility "did not seem appropriate."
Nonetheless, the rates could be lowered further if the Governing
Council considered as appropriate, the minutes added.
Data from Destatis showed that Germany's exports growth
accelerated, while imports fell more than expected in February.
Exports grew 1.3 percent on month, much faster than the 0.1
percent rise in January. Economists had expected a 1 percent
decline.
The currency rose against its major rivals in the previous
session as hopes that the coronavirus pandemic was nearing its peak
underpinned sentiment.
The euro recovered to 0.8774 against the pound, from a new
4-week low of 0.8724 hit at 6:45 am ET. The euro is seen finding
resistance around the 0.89 mark.
Data from the Office for National Statistics showed that the UK
economy shrank unexpectedly in February due to a large fall in
construction.
Gross domestic product fell 0.1 percent month-on-month in
February, confounding expectations for a monthly growth of 0.1
percent.
The euro hit 1.0942 against the greenback, representing a 1-week
high. Next key resistance for the euro is likely seen around the
1.11 level.
The single currency appreciated to a 2-day high of 119.00
against the yen, from Wednesday's closing value of 118.14. Should
the euro strengthens further, it is likely to test resistance
around the 122.00 region.
The euro rallied to a 2-day high of 1.0583 against the franc,
after falling to 1.0546 at 5:00 pm ET, which was its lowest since
April 3. The euro is poised to challenge resistance around the 1.08
mark.
The 19-nation currency approached a 2-day high of 1.5297 against
the loonie, reversing from a session's low of 1.5203 seen at 7:45
pm ET. Immediate resistance for the euro is likely located around
the 1.60 level.
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