"Dovish Draghi drags EUR/USD lower" has been one of this analyst's favorite headlines – but there is a new boss in town. Christine Lagarde has taken over the European Central Bank's presidency from Mario Draghi and now makes her first decision.
*Christine Lagarde makes her debut decision as ECB president.
*Investors will eye the president's performance and new economic forecasts.
*Lagarde may attempt to appease ECB hawks, driving the euro higher.
What is your view on the Euro and the US Dollar – bullish or bearish?
*The ECB reiterates to keep rates at current or lower levels.
*Focus on update economic projections, Lagarde's comments.
The shared currency climbed little, with the EUR/USD pair holding steady around the 1.1130 territories post-ECB announcement.
As was generally expected, the European Central Bank maintained status-quo and left interest rates unchanged at its December meeting, the first under the administration of Christine Lagarde.
In the accompanying rate statement, the ECB reiterated that rates will remain at present or lower levels until inflation outlook robustly meets to a level sufficiently close to, but below 2%.
The pair, however, had a rather softened response as investors now look forward to the outcome of the Strategy Review and the latest staff forecasts for a new incentive.
This coupled with Lagarde's comments at the post-meeting press conference – primarily in the questions and answers session – might further affect the shared currency and generate some significant trading opportunities.