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“The ECB pulled out all the stops today, extending their forward rate guidance to year-end and introducing a new series of TLTROs,” TD Securities analysts point out.

Key quotes

”  They slashed their growth and inflation forecasts as downward shocks are proving more persistent than expected.”

Change of View: We now expect the ECB to next hike rates in June 2020 (previous: Dec 2019).”

FX: The ECB has sucked the life out of EURUSD though this should hardly come as a surprise for markets given they have largely been calling the ECB’s bluff on forward guidance. Nonetheless, focus will remain on the downside for EURUSD as the policy anchor is even more deeply buried than before. A break below 1.1216 support will have us focus on a new lower trading range in near-term marked by 1.10/1.12. Outside of this, our EUR FX forecast is under review.”