- ECB leaves interest rates unchanged and sends a dovish signal in the policy statement.
- The shared currency initially spiked before witnessing a dramatic intraday turnaround.
The EUR/USD pair faded a knee-jerk bullish spike and tumbled to refresh two-month lows, around the 1.1120 region post-ECB announcement.
The shared currency initially picked up some pace after the European Central Bank, at its latest monetary policy meeting held this Thursday, decided to leave interest rates unchanged. However, dovish signals in the accompanying rate statement - indicating rates to remain at present or lower levels at least through the first half of 2020, exerted some fresh downward pressure on the shared currency.
The ECB added that it needs to maintain a highly accommodative policy for a prolonged time and remains determined to act if inflation outlook falls short of its aim, which coupled with the prevalent bullish sentiment around the US Dollar further collaborated to the pair's sharp downfall to the lowest level since late-May 2019.
Technical levels to watch
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