EUR/USD traded near $1.1235 Wednesday, FXStreet reported, as the outlet linked dollar weakness to early U.S. midterm returns; the ECB has not committed to a rate path ahead of its next meeting.
FXStreet's daily chart placed the pair's 100-day simple moving average near 1.1420, above the reported exchange rate. It marked 1.1255 as resistance and 1.1195 as support, and put the Relative Strength Index at 48.9. FXStreet had quoted the pair near $1.1180 Tuesday, as earlier EconoTimes coverage of the currency pair noted.
The ECB's Oct. 29 decision left its future rate path open, with policy to be reviewed as new data arrive. The bank kept its deposit rate at 2.50%, its main refinancing rate at 2.65% and its marginal lending rate at 2.90%. It said higher energy costs risked pushing inflation up while weighing on growth, and noted that wages had not materially responded to the energy shock at that point.
Joachim Nagel, president of Germany's Bundesbank, said Nov. 3 that a December rate increase was “very likely necessary” in his view, citing a deterioration in the inflation outlook. His assessment is an individual policymaker's view; the ECB has made no commitment to a rate path.
The ECB's next monetary policy meeting is scheduled for Dec. 16-17, with a press conference on Dec. 17.
