Did Draghi get the green light? While this is a non-binding decision, it seems positive for the ECB to move on.
The program is line with European Union law as long as certain conditions are met. More details are set to emerge.
The OMT is legal “in principle” but some conditions are needed.
The Outright Monetary Transactions program was introduced in 2012, at the peak of the debt crisis. It offered buying bonds of countries that would take up adjustment programs. This was primarily aimed at Spain and Italy. The mere decision was enough to calm markets and served as a bazooka: it was strong enough to never be used.
EUR/USD remains stable around 1.18 for now.
Just minutes before this decision, ECB president Mario Draghi sounded very determined to announce QE.
Here are the recent EUR/USD moves on the 30 minute chart: