Will the market wait and see how the euro moves following the ECB’s decision to keep rates unchanged?

Will the market wait and see how the euro moves following the ECB’s decision to keep rates unchanged?

27.10.2023

In yesterday’s U.S. currency markets, the U.S. dollar fell against the pound despite the fact that the U.S. third-quarter GDP, released yesterday, showed a significant improvement in personal consumption, rising from the previous reading of 0.8% to 4.0%. The GBP/USD pair rebounded by approximately 70 pips from 1.2069 to 1.2138.It avoided hitting a new low for the month. Since GBP/USD has risen to just below the 20-period moving average (MA) on the 4-hour chart, we will be watching closely to see if the rebound continues and the price breaks above the 20-MA with a real body.

Following yesterday’s ECB policy rate announcement, in which the rate was kept unchanged at 4.00–4.50% as widely expected, the euro traded in a narrow range against the yen.EUR/JPY traded without a clear direction between 157.999 and 158.897, with price action confined to small fluctuations around the 20-period moving average on the hourly chart. However, we should remain cautious regarding the direction of the euro against the yen following the ECB announcement.

Today’s economic indicators include the French Consumer Confidence Index at 3:45 PM, Thailand’s Foreign Exchange Reserves at 4:30 PM, the Russian Central Bank’s Key Rate at 7:30 PM, the U.S. Trade Balance at 9:00 PM,Mexico’s trade balance at 21:30, U.S. personal income and the PCE deflator at 21:30, remarks by U.S. Federal Reserve Vice Chair Bar at 22:00, the University of Michigan Consumer Sentiment Index at 23:00, Canada’s fiscal balance at 24:00, and Brazil’s central bank balance sheet at 26:30.We will closely monitor the euro’s movements following the ECB’s decision to keep rates unchanged.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran