ECB Leaves Rates Unchanged – All Eyes on Draghi as Euro Pressured



The European Central Bank left the benchmark interest rate unchanged at 1.00%. This was widely expected.

Update: Follow the live blog of the ECB Press Conference

All eyes are now on the press conference by ECB president Mario Draghi. Stay tuned for a live blog of the event, that begins at 13:30 GMT. EUR/USD is off its earlier highs but ticks up after the publication.

EUR/USD lost the 1.3280 line it had a hard time to conquer, and is now sliding to the middle of the 1.3212 to 1.3280 range.

Draghi will likely be “grilled” about the ECB contribution to the Greek bailout. See more in the ECB preview.

During the European night, the political leaders in Greece made serious progress in accepting the troika’s terms and they left only one issue open. The pension related issue, worth 300 million euros, was reportedly given two long weeks to solve.

The more recent news of a deadline this Sunday keeps the pressure up on the euro.

1.3212 is a very distinct line. A loss of this line opens the door for a quicker tumble. For more about the euro, see the EUR/USD forecast.

Earlier, the Bank of England left the interest rate unchanged, but expanded its QE program by 50 billion pounds, as expected.




About

Yohay Elam – Founder, Writer and Editor

I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me.

Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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