As expected, the ECB made no changes in rates. We could still see some other policy announcements from Draghi. After the not-too-bad inflation numbers, the European Central Bank was not expected to make a move now on the rates, leaving the main lending rate at 0.25% and the deposit rate at 0%.
EUR/USD was ticking higher towards the publication, rising to around 1.3750. The immediate reaction a fall, but this was immediately followed by a jump of EUR/USD to the former double top of 1.3773 before retreating.
Live blog: Draghi does not announce new measures – EUR/USD screams higher
Initial inflation numbers for February 2014 showed a headline CPI rate of 0.8% and core inflation at 1%. After both figures reached the lows of 0.7% and came up from the lows, expectations for setting a negative deposit rate of 0.10% subsided.
A live blog of the conference will begin towards Draghi’s press conference at 13:30 GMT.
In the press conference, Draghi will have another chance to impact the euro, especially with the ECB staff forecasts for 2016 and a potential decision to stop sterilizing the discontinued SMP bond buying program.
For more: ECB Preview: Mini QE and no negative rates? 4 scenarios
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