EUR/USD wobbles around 1.12 on Draghi

The European currency has quickly bounce off lows in the 1.1170/60 band vs. the dollar, with EUR/USD now returning to the 1.1200 neighbourhood.

EUR/USD weaker on Draghi’s statement, presser

Spot met downside pressure after President M.Draghi has reiterated that growth risks in the region remain tilted towards the downside. In line with prior estimates, Draghi revised higher the projections for both inflation and growth for the current year in comparison with March forecasts, now expected at 0.2% (vs. 0.1%) and 1.6% (vs. 1.4%).

In addition, Draghi reiterated it has not been second round effects from the bank’s monetary policy so far, while he also warn that growth in the region could be lower in Q2 vs. Q1.

EUR/USD levels to watch

The pair is now advancing 0.10% at 1.1200 and a break above 1.1246 (high May 23) would expose 1.1252 (20-day sma) and finally 1.1301 (55-day sma). On the flip side, the immediate support lines up at 1.1096 (low May 30) followed by 1.1055 (low Mar.16) and then 1.0820 (low Mar.10).