THETAKEAWAY: LTRO larger than expected by most, more banks participate -> Euro falls 40 points but then gains limited momentum

The ECB today lent banks 529.5 billion Euros in a bigger refinancing operation than most expected. 800 banks participated in the bid for fresh liquidity, as opposed to 523 in December.

EURUSD dropped about 40 pointson the news, but the market seemed unsure which way to go as it attempted to form momentum. Other currencies were strong against the Euro.