The dollar falls across the board after ECB announced increase of bond buying program
The dollar fell across the board after the ECB announced the increase of bond buying for additional Eur 600 billion, bringing the total of the program for supporting the economy after pandemic (PEPP) to Eur 1.135 trillion.
The action of the central bank was expected although the timing was and issue as markets were not sure whether the ECB will react on today’s policy meeting or it will leave for July.
The EURUSD rose around 75 pips in immediate reaction to ECB’s decision, sending the dollar index lower as other major currencies also rose after the ECB’s decision announcement.
The index held in green for the first time since 25 May in Asian / European trading on Thursday, but it seems that recovery attempts were short-lived.
Fresh weakness revived strong bearish tone and shifts focus towards next targets at 96.96/76 (weekly cloud base / Fibo 76.4% of 94.59/109.79 ascend) break of which would open way towards key support at 94.59 (9 Mar low).
Markets await release of US weekly jobless claims which could provide a breather to larger bears if release comes well below 2 million (forecast is 1.8 million) that would generate initial signal that the worst for US labor sector might be over, however, the greenback would need more signals to sideline current bears.
Res: 97.61; 98.11; 98.36; 98.75
Sup: 97.05; 96.96; 96.79; 96.00