The ECB have raised interest rates to 2.00% from 1.25% will the EURUSD price continue higher?
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Today the ECB hiked interest by 75bps to 2.00% this move was forecasted which saw EURUSD price slip slightly. However, comments after the announcement suggest that the ECB are willing to hike rates much further as they try to fight the rising inflation rate. Annual inflation rose to 9.9% in September and the ECB goal of 2% looks unlikely to be reached in the current market conditions. The European central bank will keep a close eye on the economy and will use rates to control the inflation rate.
The price of EURUSD is trading above the key level of parity. If the price remains above this key level buyers will be more confident to look for further long opportunities. The monthly chart shows the price in a strong downward trend but in a potential retracement phase. This could see the price form an upward trend on the lower time frames. The 4hr chart shows price retesting the previous highs just below the 1.000 level. If buyers step in here we could see the price trade back to the recent highs.
Did you see our AUDUSD Analysis? You can see it here.
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