💶🔻EUR/USD Extends Losses One Hour After ECB Rate Decision: Cable FX Macro

• Looking back at historical data on EUR/USD price action after ECB releases monetary policy decision, our sample covers through July 2022 (start of ECB tightening campaign)

• Since the ECB started hiking rates, the EUR/USD has finished the day down 6/10 times, the rest of the events are divided between one flat day and three up

• Our market impact analysis is trying to study price action from the statement release to the presser. On average, EUR/USD initially trades lower and extends losses one hour after the statement release

• It is evident that the presser tends to accelerate euro price action on ECB days. On average, the cross has seen a decline of 0.2% 60 minutes after the ECB decided on rates. The one standard deviation bands stand at +0.3%/-0.7% one hour after the release