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EUR/USD has consolidated in the wake....>

EURO-DOLLAR
EURO-DOLLAR: EUR/USD has consolidated in the wake of yesterday's post-ECB
rollercoaster and last trades unchanged at $1.1065.
- The rate spiked to a reaction high of $1.1069 before taking a nosedive
immediately thereafter as the ECB announced their latest policy decision. The
Bank deployed a combination of stimuli, including a 10bp cut to the deposit
rate, tiering, stronger forward guidance, extended targeted longer-term
refinancing operations and "infinite APP." the initial uptick might have been
driven by lower than exp. size of announced asset purchases. EUR/USD promptly
extended losses to bottom out at $1.0927, just above the cycle lows.
- Investors eagerly resumed EUR/USD buying as ECB Pres Draghi ruled out
competitive devaluations and downplayed potential for recession. Further support
came in the way of a BBG sources piece pointing to unprecedented fractions among
ECB members, with governors from core EZ leading resistance against resuming QE.
Resulting rally allowed the rate to close 55 pips better off.
- Bulls look to yesterday's high of $1.1087; bears eye the $1.1055 21-DMA.
- EZ trade balance is due later today; EU FinMins meet for a two-day summit.

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