Solid News

ECB Intends to Continue Raising Interest Rates at its March Meeting

3/7/2023 10:59 AM

The EUR/USD pair shows a slight increase, continuing the development of the "bullish" momentum that formed last Friday, March 3. The single currency is testing the level of 1.0700 for a breakout, and investors are counting on new fundamental drivers. The day before, the euro showed a fairly active growth, which was largely due to technical factors, as well as further weakening of the American currency.

Macroeconomic statistics from Europe turned out to be mixed again: Sentix Investor Confidence in March showed a decrease of 11.1 points after falling by 8.0 points in the previous month, while analysts had expected -8.6 points. Retail Sales in February increased by 0.3% after falling by 1.6% in January, while forecasts suggested an increase of 1.0%, and in annual terms, the figure decreased by 2.3% after falling by 2.8%, beating analysts' expectations at 1.9%.

Last week's data reflected that February Consumer Price Index in the euro area in annual terms corrected from 8.6% to 8.5%, while analysts expected a slowdown to 8.2%, and in monthly terms, the CPI accelerated by 0.8% after -0.2 % in January, with the forecast at -0.3%. The Core CPI added 0.8% MoM and 5.6% YoY, which was above the projected 0.0% MoM and 5.3% YoY. Against this background, the President of the European Central Bank (ECB), Christine Lagarde, said that inflation in the region will be kept at peak values for some time, which makes it possible to raise interest rates by at least 50 basis points at a meeting on March 16. Over the past year, the ECB has already adjusted the value by three percentage points, and investors are confident that this year the key deposit rate will rise to 4.00% from the current 2.50%. At the same time, Lagarde stressed that the region's economy is showing resilience amid high employment, while unemployment is at a minimum.

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is slightly narrowed from below, remaining spacious enough for the current market activity. MACD indicator is growing, while preserving a rather stable buy signal (located above the signal line). Stochastic keeps its upward direction but is approaching its highs rapidly, which reflects risks of the overbought euro in the ultra-short term.

Resistance levels: 1.0700, 1.0765, 1.0800, 1.0850. | Support levels: 1.0654, 1.0600, 1.0550, 1.0500.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2024