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The ECB refused to act and the euro certainly liked it. The main lending rate remains at 0.25% and the deposit rate at 0%.  Even though most analysts had not expected any change in policy at this meeting, there was quite a bit of uncertainty towards the move, as inflation remains low and the exchange rate of the euro remained high.

Update: Follow the live blog of the ECB press conference

EUR/USD traded higher towards the decision, flirting with 1.3950 but staying shy with the cycle high of 1.3966. The decision sends the common currency higher and 1.40 is getting closer even before Draghi opens his mouth The pair reached a new one month high at 1.3959, a new one month high, still under the cycle high.

This is only the first  course: ECB president meets the press at 12:30 GMT and he always rocks the markets. Stay tuned for a live blog of the big event.

Background:  In the ECB preview, we listed 4  scenarios for the ECB with  corresponding market reactions. Draghi’s  stronger and stronger rhetoric is eventually having a  diminishing impact on the euro. In a perfect world, he would like a lower euro but without having to act.

Support awaits at 1.3894, 1.3830 and 1.38. Resistance is at 1.3966, 1.40 and 1.4115. For more, see the euro $ prediction.