Big surprise: the ECB cut the rates. Only few anticipated this. The ECB cut the main lending rate to 0.05%, deposit rate at 0.20% and the refi rate to 0.30% – This is huge.
EUR/USD is at
1.3077 1.3055. This is the lowest level in more than a year.
While there was no full consensus, the European Central Bank was expected to leave the main lending rate at 0.15% and the deposit rate at -0.10%. The focus shifts to president Mario Draghi’s press conference, in which he may announce more measures, perhaps QE. A report that hit the wires before the publication talked about QE worth â‚¬500 billion that will be announced today. We will soon learn.
EUR/USD traded around 1.3125 prior to the publication, having being hit by the aforementioned report.
Here is the chart:
Stay tuned for a live blog of the press conference.
Here is the preview: 4 options – lower forecasts but probably no action