EUR/USD extends rally above 1.1100

The Euro continue to rise after Mario Draghi press conference that followed the decision of the European Central Bank to introduce more stimulus, surprising analysts that were not expecting such a move.

EUR/USD has now risen more than 300 pips from the lows. The pair bottomed at 1.0821 and now is trading above 1.1140, up 1.34% for the day, with the euro being the best performer in the currency market.

Recently it peaked at 1.1158, hitting the highest level since February 17. If it consolidates at current levels, EUR/USD would post the first daily close in three weeks above the 20-day moving average.

ECB boosts EUR despite easing measures

The euro reversed after the initial reaction to the ECB announcement that included rate cuts and an increase in the purchase program. “All in all, the ECB delivered more than market participants had expected. Particularly the part in which the ECB will now actually pay banks for borrowing money came as a surprise. Still, the rebound of the euro exchange rate after comments by Draghi that the ECB could not cut rates as low as it wanted indicates that betting on a weaker euro as the outcome of today’s meeting is risky”, said Carsten Brzeski, analysts from ING Bank.

The Euro continue to rise after Mario Draghi press conference that followed the decision of the European Central Bank to introduce more stimulus, surprising analysts that were not expecting such a move.

(Market News Provided by FXstreet)