On Friday (Oct 28), / fell, temporarily trading at 0.9859, down 0.17%.
Announced the New Deal, as scheduled the second consecutive rate increase of 75 basis points.
The market more than do, down 28 points to 1.0007.
Marginal ECB borrowing rose to 2.25 per cent, the deposit facility rate to 1.50 per cent and the main refinancing rate to 2 per cent.
The ECB said its governing council had made substantial progress towards the exit, with a third successive big increase in its policy rate.
It is still too high and will remain above target for an extended period.
The Committee decided today and is expected to raise interest rates further to ensure that inflation returns to its medium-term inflation target of 2% in a timely manner.
Soaring energy and food prices, supply bottlenecks and resurgent pandemic demand have led to widening price pressures and higher inflation in recent months.
To reduce support for demand and guard against the risk of a sustained rise in inflation expectations.
Given the unexpected and unusual rise in inflation, it needs to be recalibrated to ensure that it is consistent with the broader policy normalization process and to enhance the transmission of policy rate increases to bank lending conditions.
Eur/USD traded at 0.9960 price zone after encountering sellers near 100 SMA in daily chart.
The pair remains above the trendline at this year’s high, currently around 0.9920, and could complete a pullback before resuming its recent bullish trend.
