Ticker

Last

High

Low

Daily Change (pip)

Daily Range (pip)

EUR/USD

1.2029

1.2059

1.1914

112

145

EUR/USD breaks out of the narrow range from earlier this week, with the pair at risk for a further advance as the European Central Bank (ECB) appears to be on course to conclude its quantitative easing (QE) program.

Even though the ECB remains in no rush to remove the zero-interest rate policy (ZIRP), it seems as though the Governing Council will stick to the December deadline for the Public Sector Purchase Programme (PSPP) as officials warn rates will ‘remain at their present levels for an extended period of time, and well past the horizon of our net asset purchases.’ Moreover, the recent comments from President Mario Draghi and Co. suggest the central bank will continue to tolerate the appreciation in the Euro exchange rate as ‘the current positive cyclical momentum increases the chances of a stronger than expected economic upswing,’ and the central bank may continue to gradually alter the monetary policy outlook over the coming months as ‘risks surrounding the euro area growth outlook remain broadly balanced.’ In turn, the shift in EUR/USD behavior may continue to unfold ahead of the next ECB meeting on October 26 as the Governing Council remains confident in achieving the 2% inflation-target over the policy horizon.

Nevertheless, EUR/USD may face a bumpy road ahead of the Federal Open Market Committee (FOMC) interest rate decision on September 20 as Chair Janet Yellen and Co. are also scheduled to release their new projections for growth, inflation and the benchmark interest rate.

EUR/USD Daily Chart