The ECB announced a package of measures to shield the Euro area economy from the impact of the covid-19 virus, but left rates unchanged, analysts at Nordea report. EUR/USD trades at 1.123.
“The ECB did not deliver the rate cut that markets were anticipating and did not alter the forward guidance.”
“The initial market reaction was surprisingly muted, given the high expectations and the broad range of options the ECB had at its disposal. Equity prices fell, the EUR strengthened and longer bond yields fell.”
“President Lagarde will give her comments on the decision in the press conference at 14:30 CET, and further details on the new operations are published in press releases at 15:30 CET. Volatility in financial markets is likely to stay elevated during Lagarde’s press conference.”