The European Central Bank left the main lending rate unchanged at 0.75% and the deposit rate at 0%. The move was widely expected, even though a rate cut wasn’t ruled out.
EUR/USD traded steadily around the 1.31 line prior to the publication. Â It slid to 1.3092 before the actual call and leaps to 1.3115 immediately afterwards. The focus now shifts to the press conference by Mario Draghi.
Update: Follow Draghi’s press conference here.
Analysis: EUR/USD Powers Higher on Draghi’s Words
The slide in inflation and the ongoing recession in the euro-zone supported a rate cut. In addition, some members wanted a rate cut last month.
On the other hand, the debt crisis has faded away, and this could be seen also now in the recent Spanish bond auction.
Draghi will hold a press conference at 13:30 GMT and is likely to provide more information about the current situation – recession is probably stabilizing.
For more, see the EUR/USD forecast.
