The ECB follows the BOE and also sends the currency lower as he states that rates will stay low for a long time: at current levels or even lower. In addition, the euro-area growth risks remain on the downside. Mario Draghi said he sees underlying price pressures in the medium term. EUR/USD is falling sharply. It reached a low of 1.2882 before climbing back above 1.29 towards the end of the presser. This has been one of the most dovish apperances by Draghi for a long time. Highlights Forward guidance: rates expected to remain low for a long time Unprecedented, significant step forward. Growth has downside risks Decision was unanimous 50bp is not lower bound Open mind on a negative deposit rate EUR/USD tumbles over 100 pips (so far) Live Blog 12:35 Recent confidence indicators are positive signs. 12:36 Draghi says interest rates to stay low for an extended period of time. 12:37 GMT EUR/USD already at 1.2918. 12:38 Reduced demand for labor 12:40 Heightened credit risk and ongoing adjustment 12:41 Fragmentation needs to decline in order for the situation to improve. 12:41 Steps for a banking union require a more speedy approach. 12:42 Prices should remain balanced. 12:42 ECB notes the EU Council decisions in the areas of youth unemployment and others. 12:45 Draghi reiterates that all interest rates to remain low for an extended period of time. 12:45 EUR/USD getting closer to 1.29. 12:46 Discussed various ways of forward guidance. 12:47 The decision was unanimous 12:47 EUR/USD already under 1.29. 12:49 ECB has guidance role on ABS initiative. 12:50 Draghi asked about the “extended period of time” but doesn’t elaborate. 12:51 The ECB injected a downward bias in bonds. 12:52 The decision was unanimous regarding forward guidance. 12:55 Draghi makes it clear that also the deposit rate could drop – EUR/USD already at 1.2890. 12:55 Liqduidity will remain ample 12:56 An extended period of time is not 6 or 12 months but “extended” 12:57 Draghi avoids answering on a Greek haircut 12:59 Objective to maintain price stability. 13:03 Next communication moves unknown at the moment. EUR/USD stabilizes above 1.29 for now. 13:05 We don’t react to others (regarding communication) 13:05 Increased volatility justifies forward guidance. 15:09 Portugal has made lots of progress. 13:13 We have two types of backstops. Example: Spain. 13:16 OMT was not designed to replace policy. 13:18 Not all governments used the time in a good manner. 13:20 Press conference ends. Background The ECB left all interest rates unchanged: the main rate is at 0.50% and the deposit rate at 0%. This was widely expected. It’s important to note that the decision comes during low liquidity due to the US holiday. More: EUR/USD: Trading the US Non-Farm Payrolls EUR/USD weekly forecast Forex Analysis: EUR/USD Wavers after 1.3000 Breakdown 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. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Forward Guidance Day in Europe, Independence Day in the Matthew Lifson 9 years The ECB follows the BOE and also sends the currency lower as he states that rates will stay low for a long time: at current levels or even lower. In addition, the euro-area growth risks remain on the downside. Mario Draghi said he sees underlying price pressures in the medium term. EUR/USD is falling sharply. It reached a low of 1.2882 before climbing back above 1.29 towards the end of the presser. This has been one of the most dovish apperances by Draghi for a long time. 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