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EUR/USD fell steeply after ECB policymaker Stournaras called for accelerated PEPP purchases to counter what he called unwarranted tightening of financing conditions. The pair was at risk of breaking below the 1.2089 support level.
Expectations of more ECB easing weigh on the euro and can strengthen the dollar. This shifts the relative cost of dollar-priced commodities for euro-area importers.
investingcube.comEno Eteng (DipTA, MSTAFeb 26, 2021After 533 past bearish macro events, Euro (USD per EUR) moved a median -0.3% over 5 sessions (33% higher; middle half -1.2% to +0.2%), and -0.5% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Reports EUR/USD falling steeply on the dovish ECB PEPP comments, a direct same-day currency catalyst.
ECB's call for faster PEPP purchases weighed on the euro, the largest weight in the broad dollar basket.
