The European Central Bank left all rates unchanged in line with expectations offering little fresh insights. The euro has barely changed so far, however larger moves can occur during the press conference in more than 30 minutes. The key headlines from the statement are as follows:
- QE running until September 2018 or beyond if needed
- QE to run until inflation path has sustainably adjusted
- QE can be increased in size, duration if outlook worsens
- ECB expects key interest rate to remain at present levels for an extended period of time and well past the horizon of QE
There are now new remarks here indeed, hence a response seen in the FX market has been muffled thus far. Nonetheless it’s worth stressing that the ECB leaves the door open as far as a possible QE extension is concerned. Notice that the press conference of Mario Draghi will kick off at 1:30 pm BST and then some more substantial moves across assets could take place.
The euro has little changed following the ECB announcement which should not be surprising. However, the pair stays constantly below its crucial short-term resistance which could help bears regain their trend. Source: xStation5