EUR/USD last trades flat at $1.1146.....>

EURO-DOLLAR: EUR/USD last trades flat at $1.1146 after closing a handful of pips

higher yesterday in the wake of an ECB-inspired whipsaw.

- All eyes were on the ECB yesterday, as the central bank announced its monetary

policy decision. Policy settings were left unchanged, but the accompanying

statement suggested that further easing is nigh. The ECB not only changed its

forward guidance (rates at present or lower levels at least through 1H2020), but

also pointed to the potential for fresh QE and deposit rate tiering.

- EUR/USD spiked to $1.1161 before diving to plumb a new YtD low of $1.1102 in

reaction. The rate then rallied sharply, running out of fuel only at $1.1188, as

ECB Pres Draghi's press conference was deemed less dovish than the statement.

However, the pair gave away most of these gains through the rest of the day.

- ECB sources told BBG that the Governing Council was not unanimous yesterday in

backing Christine Lagarde's bid to become ECB chief, amid two objections and one

abstention. Elsewhere, uncertainty remains re: EU-UK Brexit talks under Johnson,

while political instability mounts in Spain amid a struggle to form a new gov't.

- Bulls target the 200-HMA at $1.1201, bears eye the aforementioned YtD low.