What Awaits the Euro Rate After the ECB Meeting?

What Awaits the Euro Rate After the ECB Meeting? Today's European Central Bank (ECB) meeting was the center of attention for global markets. While the ECB is expected not to make any changes in interest rates, the agenda of the bank is expected to be the appreciating euro. So what awaits the euro rate after the ECB meeting? Although the news flow regarding the developments of the treatment process and geopolitical developments in the coronavirus epidemic are still the center of the agenda, the announcement of the new monetary policy strategy for the US Federal Reserve (Fed) and the higher-than-expected value of the euro caused the ECB meeting to be held on Thursday, September 10 to gain importance.   Indices, which rallied under the leadership of the USA, started to decline, even though there was no significant development in recent weeks. After this situation, sales accelerated with the sharp decline in Tesla stocks. However, sales stopped yesterday, today the electric car manufacturer took a deep breath. Although there is no significant development in the rise like the decline, these movements positively affect the earnings of those who make the most technical transactions. With the number of cases started to rise again in the coronavirus epidemic, the indices started to rise with the resurgence of economic activities. The appreciating indices received support from incentives and monetary expansion despite high risks. Nowadays, despite the lack of serious progress in the vaccine planned to be used in the treatment of coronavirus, the lack of a great change in the data and the continuing increase in cases, the indices continue to rise. On the equity side, this approach has given the indices a lot of value and dropped the dollar to its lowest level in two years. The US dollar index, which recovered towards 94.0 in the developments in the last week, started to decline with the US session yesterday and is trading at the level of 93.0 today. The 94.0 level, which was tested on August 3, but could not be passed on the index, is the first resistance, and today's ECB meeting is very important for the move towards this resistance. The European Central Bank (ECB) has grown its asset purchases since the already negative interest will not have an effect, and it also increased the purchase of epidemic assets. The European Union has decided to continue the incentives. There are incentives specific to governments, however, while the movement on the PMI side shows that the process will progress slowly, there is also an inflation problem. Fed's Statements Puts ECB in Difficulty While the new inflation approach announced by the US Federal Reserve (Fed) put the ECB in a difficult position, the euro rose further. On the other hand, for the ECB, which does not want the euro to get stronger, it is foreseen that verbal guidance will be used effectively in this meeting. If the statements of the ECB, which aims to lower the euro with downside risks and trade concerns, create a pricing as expected after the meeting held today, the increase in the US Dollar Index may also cause a depreciation on the EUR / USD side. However, the statement of the European Central Bank (ECB) will not ensure the continuity of pricing. In order for the pricing to continue in this direction after the first effect, the dollar demand in global markets has to increase. However, pricing in financial markets always focuses on optimism. Therefore, the effect may not be sustained. If the ECB takes an attitude as expected, 1.1730 and 1.1690 levels will be followed in the depreciation of EUR / USD parity. US Dollar Index will be watched as 93.30 intraday resistance. Having set a new record with 8,86 yesterday, the EUR / TRY rate broke the record again with 8,8650 in the last minutes. After the announcements to be made after the ECB meeting, with the realization of the expected decline in the euro, there may be a retreat in the currency between the range of 8.81 - 8.8050. However, it is seen that the pressure on the Turkish Lira has been effective in the increase in X / Turkish Lira rates. Therefore, the decline in the euro rate may be limited.