EUR/USD jumps to 1.0850 on steady ECB

The single currency accelerated the uspide to the 1.0850 area vs. the greenback following the ECB interest rate decision.

EUR/USD within range ahead of Draghi

Spot pushed higher after the Governing Council of the European Central Bank left its monetary stance unchanged at today’s meeting.

In fact, the central bank left the interest rate on the main refinancing operations at 0.00%, the interest rate on the marginal lending facility and the deposit facility at 0.25% and -0.40%, respectively.

Looking ahead, investors will closely follow the usual press conference by President Draghi (1300GMT), with the current QE programme and the possibility of tapering taking centre stage along with updated revisions of employment, growth and inflation figures in the region for the upcoming years.

EUR/USD levels to watch

The pair is now up 0.90% at 1.0852 and a break above 1.0907 (50% of the November drop) would target 1.0919 (55-day sma). On the flip side, the immediate support aligns at 1.0696 (low Dec.7) followed by 1.0669 (20-day sma) and finally 1.0503 (2016 low Dec.5).