13.09.2019
The euro rose on Friday on the European market against a basket of global currencies, extending gains for the second day in a row against the US dollar, hitting its highest level in two weeks, for the second weekly gain in a row, after the decisions of the European Central Bank at the end of its regular meeting of monetary policy, which came Below market expectations especially the bond purchase program.
The euro rose against the dollar by about 0.2% to $ 1.1090, the highest since August 29, the opening price of the day at $ 1.1064, and recorded the lowest level at $ 1.1055.
Yesterday, the euro gained 0.5% against the dollar, its first gain in three days, following the ECB's decisions and Mario Draghi's comments.
In terms of trading this week, the euro has so far gained about 0.6% against the dollar, for the second consecutive weekly gain.
At the end of Thursday's monetary policy meeting, the European Central Bank (ECB) left its benchmark borrowing rates unchanged at zero record levels, cut its deposit rates by 10 basis points to minus 0.5%, and launched a new bond purchase program by about € 20 billion per month. Starting next November.
Most experts had predicted a 10 basis point cut in the deposit rate, but the asset purchase program was projecting a value of 30 billion euros per month for bond purchases starting in October.
ECB Governor Mario Draghi said members of the bank's executive board had agreed to re-launch the stimulus program to support the economy in the face of growing risks.
Draghi, whose mandate expires in late October, ruled out a recession in the euro economy soon, but stressed that risks were rising and pointed to a rate cut in response to continued weak inflation in Europe.
The decisions of the European Central Bank angered US President "Donald Trump" again the attack on the Federal Reserve "US Central" for not cutting interest rates more aggressively.
"They are trying and succeeding in depreciating the euro against the overly strong dollar, which is hurting US exports, while the Fed is doing nothing. They are getting money for deposits while we are paying interest," Trump said on Twitter.
EURUSD has managed to reach the resistance of the descending channel shown, and SMA 50 meets this resistance to add more strength to it, while Stochastic is reaching overbought areas now.
Therefore, these factors encourage us to expect a bearish rebound to resume trading within the mentioned descending channel, waiting for the target of 1.0857 mainly, taking into consideration that the breach of 1.1085 will lead the price to achieve additional gains up to 1.1180 before any new attempt to decline.
Expected trading range for today is between 1.0960 support and 1.1120 resistance.
Expected trend for today: Bearish.
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