No change in ECB policy: 0.05% in the main rate, -0.20% in the negative deposit rate and no special announcement.
EUR/USD remains unchanged in high anticipation for president Mario Draghi’s press conference at 12:30 GMT. Stay tuned for a live blog of the event.
The European Central Bank was expected to shy away from any changes to monetary policy: leaving the main lending rate at 0.05% and the deposit rate at -0.20%. This is also the lower bound for bond yields.
EUR/USD was somewhat pressured again towards the release, trading under 1.0560. The shift now moves to Draghi and his determination to continue QE despite the recent economic improvement.
You can read more here: ECB Quick Preview: 2 things to watch – downwards pressure likely to continue
The pair jumped higher yesterday on yet another disappointing US figure: retail sales did not rise as much as expected and reassured everybody that Q1 was quite weak.
In general, the monetary policy divergence is still keeping the pair in the downward trajectory. This could change later in the year, after the first US rate hike.
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