The speech provided by Member of the Executive Board of the ECB Isabel Schnabel was the only factor that shaped the market situation yesterday. She said that the period of high interest rates was expected to be long.She also referred to the key interest rate changes in 2008. Isabel Schnabel emphasizes that the existing conditions are much more challenging and the average key rate should be higher than in 2008. Until the crisis of 2008, in Europe, the benchmark rate varied from 2.00% to 4.75% with an average level of 3.00%. That is why the expected key rate hike is unlike to be the last one in the cycle. What is more, the ECB will hardly consider monetary policy loosening in the near future.What is more, Isabel Schnabel has assured everyone that the European Central Bank has enough recourses and tools to prevent the banking crisis from ballooning. Against the backdrop, the euro showed a rise.Curiously, the pound sterling increased more than its counterpart. Since the beginning of the trading day, the euro has been trying to catch up with the British pound, thus pushing it higher. Notably, today, the pound’s growth is slower than yesterday. It see ms that the situation will be the same during the whole day. Only unexpected news may change traders’ sentiment.On the trading chart, we see that since the beginning of the week, the euro has been rising against the US dollar. As a result, the currency exceeded 1.0800. After a decline recorded during the period between March 23-24, the euro has recovered by 50%. This points to the bullish sentiment among traders.If the price consolidates above 1.0800, the volume of long positions will increase. In the event of this, the euro may climb to the recent local high. If the price slides below 1.0800 and settles there, a new downward cycle will be launched. The pound sterling also recovered after the recent drop against the greenback. As a result, the British currency exceeded 1.2300, which points to a rise in the volume of long positions. If the price consolidates above 1.2300, the uptrend will continue. However, the pair may face obstacles near the mid-term high of the upward trend located at 1.2400/1.2450. This area may exert pressure on the price.

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00:00 INTRO
00:20 ECB’S KEY INTEREST RATE
00:56 ECB
01:12 QUOTES
01:38 EUR | USD
02:18 GBP | USD