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ECB Leaves All Rates Unchanged – EUR/USD Ticks Higher

The consensus was that the ECB would not change the main lending rate nor the deposit rate, and this is exactly what happened. The “nuclear option” of setting a deposit rate was kept in storage for now.

EUR/USD was trading at  around 1.3110 towards the decision, after climbing to new 4 week highs. The pair is now marginally higher.

Follow a live blog of the ECB press conference

Update:  Draghi put the negative rate talk on the back burner and sent the euro higher

The focus now shifts to the press conference by Mario Draghi. Stay tuned for a live blog of this event.

In May, the ECB cut the main lending rate from 0.75% to 0.50% and left the deposit rate unchanged at 0%. The deterioration in the economic situation and the drop in inflation triggered the cut of the main rate, but not in the deposit rate.

However, in a response to a question, Draghi showed a lot of openness to a negative deposit rate, and this sent the euro plunging.



Yohay Elam

Yohay Elam

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 a 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.