Market Spotlight: EUR Rallies As ECB Announces Emergency Meeting

EUR Bid on ECB NewsThe Euro has been heavily bid today on the back of news that the ECB has called an emergency meeting. The central bank has called an unscheduled meeting to address financial market conditions on the back of a steep rise in borrowing costs for individual EU member governments over the last week. Expectations of forthcoming ECB tightening, along with fears over the impact on the eurozone economy, have pushed bond yields to painful levels for countries such as Italy. While no details have been given, a speech by ECB’s Schnabel ahead of the announcement suggests that the ECB will outline measures to address this fragmentation in financial markets, especially as it pushes ahead with tightening.Technical ViewsEURGBPFollowing the breakout above the bearish trend line, EURGBP has now broken out of the subsequent triangle holding-pattern which formed on the back of that break. The move, which took out the former .8659 level resistance, has seen price trading up to test huge resistance at the .8719 level. This is a major level for the pair and, while stalling for now, bullish MACD and RSI readings suggest potential for a further move higher putting the focus on .8869 above.

from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/market-spotlight-eur-rallies-as-ecb-announces-emergency-meeting"
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