ECB sources:
- Baseline for September is no change in policy rates.
- Those seeking another rate cut will face a battle.
- Policymakers is set a high bar for a September rate cut.
- Rate cut would require deterioration in data, lower projections.
The EURUSD moved to a low of 1.1729 during the early part of Lagarde’s press conference, but rebounded higher. A new high going back to July 7 was reached at 1.1788. That tested the July 7 high at 1.17894 and the July 6 high at 1.1787. Getting above those levels would next target the July 3 high at 1.1808 followed by the July 1 high at 1.1830.
On the downside, a swing area between 1.17529 and 1.1769 needs to be broken to disappoint the buyers/bulls from the new highs.
This article was written by Greg Michalowski at investinglive.com.
