The European Central Bank was expected to leave all its policy tools unchanged: the main lending rate at 0%, the deposit rate at -0.40% and the QE program unchanged at 80 billion euros for now and 60 billion from April.
EUR/USD was trading quite steadily in a range around 1.0660 ahead of the news. The euro was moving according to the fluctuations and mood changes of the US dollar.
More; Draghi says underlying inflation remains subdued – EUR/USD slides
Draghi and his colleagues made bigger announcements in their previous meeting in December. On one hand, they extended the QE program through 2017 and removed the yield limit. On the other hand, the pace of bond buys will be reduced from April. Together with subdued inflation forecasts through 2019, the overall message was dovish and the euro fell.
Watch the live coverage of the ECB event with Valeria Bednarik, Mauricio Carrillo and myself:
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