We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
Oil - US Crude
More View more
Real Time News
  • Currency Strategist,@PaulRobinsonFX is a Swing trader. What is your #tradingstyle? Take the quiz and let us know: https://t.co/LPBOcS0Vtd https://t.co/WzRYeqRhUL
  • Despite what your #tradingstyle is, you should be keeping a trading journal. How can you start keeping a trading journal? Find out: https://t.co/0akgWbyJEw https://t.co/4ehMlN4zv1
  • The Euro’s struggle to move higher against a range of currencies continues and without further support this is likely to continue into the year-end. Get your $EURUSD market update from @nickcawley1 here: https://t.co/myZ7R0eGUb https://t.co/12WJd53Cx4
  • The #Dow Jones moved confidently higher last week as it added onto recent gains. Now, #stocks will aim to continue their rally while enjoying support from prior all-time highs. Get your technical analysis on #equities from @PeterHanksFX here: https://t.co/Qb89HIWxBY https://t.co/HMguTvD157
  • How can you trade #forex after a major release? Find out: https://t.co/sdxcXb8q60 #tradingstyle https://t.co/LNcbvVhIc2
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/mk1w1DM2Rh https://t.co/m763epaH2C
  • Crude #oil prices, $NOK and $SEK may rise if Donald Trump’s speech on trade war developments amplifies market buoyancy against the backdrop of critical US CPI and retails sales data. Get your market update from @ZabelinDimitri here:https://t.co/5rdK7xsQNq https://t.co/YnlQjKNZdS
  • RT @next_china: U.S., China chief trade negotiators spoke by phone on Saturday, Xinhua reports https://t.co/dMQtd0g4jY
  • The $AUDUSD and $EURUSD downtrend may prolong as traders counterintuitively buy into their descent. Meanwhile, the USD/CAD uptrend may accelerate on rising net-short bets. Get your market update from @ddubrovskyFX here: https://t.co/dlzJ31kf3f https://t.co/xp8P9MmCgb
  • As we head into next week, Cable is continuing to digest the massive leg higher last month, which at some point soon could mean another surge. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/LJ42YhDe3X https://t.co/5hGwhGBpLB
Forex News: ECB Keeps Rates on Hold at 0.75%; Euro Unchanged or Lower

Forex News: ECB Keeps Rates on Hold at 0.75%; Euro Unchanged or Lower

2012-11-08 15:10:00
Christopher Vecchio, CFA, Sr. Currency Strategist

THE TAKEAWAY: EUR European Central Bank Rate Decision > Main Overnight Rate on Hold at 0.75%, as expected > EURUSD BULLISH

Earlier, the European Central Bank kept its key interest rate on hold at 0.75% as expected, while also leaving unchanged its other key interest rates as well as any extraordinary monetary policy measures. For now, it seems, with the Outright Monetary Transactions (OMTs) scheme in place but no official aid request from Italy or Spain, the ECB remains on the outside of the bond market, but stands ready to take action.

ECB President Mario Draghi, on the whole, was unrevealing in his rhetoric, with more of the same in terms of policy outlook being decided today. Inflation is running slightly above the ECB’s medium-term target of +2% year-over-year, President Draghi noted, and that economic growth remains sluggish. Essentially, this was the overarching theme of the presser – that the opposing directions that inflation and growth are moving will keep the main interest rate on hold for now.

EURUSD 1-minute Chart: November 8, 2012

Forex_News_ECB_Keeps_Key_Rate_On_Hold_at_0.75_Euro_Unchanged_body_Picture_1.png, Forex News: ECB Keeps Rates on Hold at 0.75%; Euro Unchanged or Lower

Charts Created using Marketscope – Prepared by Christopher Vecchio

Following the press conference, the EURUSD traded higher, from 1.2726 to as high as 1.2757, before falling back to 1.2742, at the time this report was written. The Euro weakened against other major counterparts such as the Australian and New Zealand Dollars, which comes as no surprise given the uptick in broader risk assets after the head of the ECB spoke.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.