During yesterday’s ECB meeting it was decided to leave the key interest rate unchanged at the level of 1%. After the meeting, Mario Draghi held a press conference. According to him, despite providing European banks with extra liquidity and maintaining low interest rates, there has been no positive outcome so far.
Mario Draghi assumes that the eurozone’s economic recovery will be very slow. The ECB’s forecast takes into account the risks connected with the eurozone debt issues. Numerous analysts expect the interest rates to be lowered further.
In the meantime, EURUSD start reversing its short-term rally (probably, wave A H1). According to the SRP Department of , during the process of retracing (potential wave B H1) it is necessary to monitor the structure. The closest targets are 1.3236 and 1.3197.
