Euro rises as ECB raises 2015 inflation forecasts
The ECB opted to leave its minimum bid rate at 0.05 percent while continued to charge banks depositing their money at the ECB 0.2 percent.
Now, the ECB predicts inflation to reach 0.3 percent in 2015, instead of 0.0 percent estimate in March, while it held its forecasts for 2016 and 2017.
ECB President Mario Draghi said inflation bottomed out earlier this year and will increase later this year, yet the inflation rate in the euro area will remain low in the coming months.
As for growth, the ECB left its forecasts for 2015 and 2016 unchanged, while downgrade 2017 estimates by 0.1 percent.
The euro showed some fluctuation after the ECB decision and comments from Draghi on woes from Greece since it has not sealed a deal with creditors yet.
Greece may repay a debt installment of 300 million euros to the IMF on Friday, but will find difficulty to repay the other three installments totaling 1.25 million euros due by the middle of this month.
The EURUSD pair rose to trade around 1.1168, after showing some volatile movements, where it found some support from daily SMA 15.
The pair faced resistance after it hit a peak of 1.1188, yet the RSI 14 momentum indicator may help the euro to rise as it hovers above the 50-center line.