ECB refrained from switching to a hawkish stance | 15 April 2022

15 April 2022, EUR/USD

ECB refrained from switching to a hawkish stance

EURUSD trading plan:

Short-dated euro zone bond yields and the single currency fell as traders pared back rate hike bets after the European Central Bank refrained from switching to a more hawkish stance. ECB concluded its latest meeting with cautious steps to unwind support and avoiding any firm pledge beyond the end of bond buys it had already laid out in March. Germany's yield curve as measured by the gap between 2- and 10-year yields to around 80 bps, the steepest since January 2019. The yield curve reflects that ECB is in no rush to tighten monetary policy despite inflation being elevated.

Investment idea: sell 1.0835 and take profit 1.0765.

David Johnson
Analyst of «FreshForex» company
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