The ECB met expectations and nothing more, cutting the negative deposit rate to -0.30. More measures will be announced in the press conference.
EUR/USD jumps as this is at the lower end of expectations.The high so far is 1.0690. Resistance is at 1.0710.
Update: Draghi Doesn’t Deliver – EUR/USD shoots higher
Earlier, around 5 minutes before the release, the Financial Times tweeted that there would be no change and that triggered the initial move higher. On the news, the pair fell to 1.0520, the lowest since March, when it marked the 12 year low of 1.0460.
Will Draghi announce more QE? This remains an open question. Expectations stand at an addition of 15 billion per month, from 60 to 75 billion euros. Ranges were for 10-20 billion – 70 to 80 billion.
The ECB was expected to cut the deposit rate from -0.20% to -0.30% or -0.40%. They were also expected to say now that they will announce more measures in the press conference held by Mario Draghi at 13:30 GMT.
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