Euro Rallies From Trading Range After ECB Decision, Later Declines

The  euro today broke out of  the  range it was trading in  for  the  earlier part of  the  session after the  European Central Bank announced its monetary policy decision. The  EUR/USD currency pair rallied higher after the  ECB announcement where it maintained its current monetary policy direction as  was expected.
The  EUR/USD currency pair today rallied from a  low of  1.1396 to  a  high of  1.1432 following the  ECB decision before retracing all its gains and  heading lower.
The  currency pair was trading in  a  consolidative range since the  start of  today’s session, but rallied higher after the  ECB decision. The  ECB’s Governing Council left the  interest rate on its main refinancing operations at  0.00%, while the  marginal lending facility was maintained at  0.25%, and  the  deposit rate was left at  -0.40%. These decisions were in  line with investor expectations, which boosted the  single currency. The  pair later retraced some of  its gains despite the  ECB President Mario Draghi‘s hawkish comments at  the  accompanying press conference. Earlier today, the  release of  the  disappointing German IFO business climate survey had a  negative impact on  the  pair.
Several macro releases from the  US docket by  the  Census Bureau including the  advance goods trade balance and  the  durable goods orders had a  muted impact on  the  currency pair.
The  clash between the  EU and  Italy as  well as  tomorrow’s US GDP data are likely to  influence the  currency pair’s future performance.
The  EUR/USD currency pair was trading at  1.1381 as  at  13:55 GMT having dropped from a  daily high of  1.1432. The  EUR/JPY currency pair was trading at  128.07 having risen from a  low of  127.48.

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