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At its monetary policy meeting held today, the Governing Council of the European Central Bank (ECB) decided to leave the interest rates on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.40%, respectively.  Attention now turns to the  ECB President Mario Draghi’s press conference at 13:30 GMT.

Key highlights from the official statement

  • The Governing Council now expects the key ECB interest rates to remain at their present levels at least through the end of 2019.
  • The Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the asset purchase programme for an extended period of time past the date when it starts raising the key ECB interest rates.
  • A new series of quarterly targeted longer-term refinancing operations (TLTRO-III) will be launched, starting in September 2019 and ending in March 2021.
  • The Eurosystem’s lending operations will continue to be conducted as fixed rate tender procedures with full allotment for as long as necessary, and at least until the end of the reserve maintenance period starting in March 2021.

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EUR/USD Technical Analysis:  Set-up  favors  bearish traders, dovish ECB message awaited for confirmation.

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About ECB’s press conference

Following the ECB ´s economic policy decision, the  ECB  President gives a press conference regarding monetary policy. His comments may influence the  volatility  of EUR and determine a short-term positive or negative trend. His hawkish view is considered as positive, or bullish for the EUR, whereas his dovish view is considered as negative, or bearish.