News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Breaking news

Core PCE prints at 1.6% v/s expectation of 1.4% - PMI reports are on deck

Forex News: The ECB Keeps Benchmark Rate at 0.75%, Despite OMT Standstill

Forex News: The ECB Keeps Benchmark Rate at 0.75%, Despite OMT Standstill

2012-11-08 13:08:00
Benjamin Spier, Technical Strategist
Share:

THE TAKEAWAY: ECB keeps interest rate at 0.75% for the fourth straight month -> Draghi to discuss decision at 13:30 GMT -> Euro trading unchanged

The European Central Bank left the benchmark interest rate at 0.75% following their November meeting, and the decision was as expected. It is the fourth straight month that the central bank has left the interest rate unchanged, as ECB President Draghi has previously mentioned that they are looking towards the OMT bond purchase plan to help provide stimulus to struggling economies, in place of a less effective interest rate cut.

However, the OMT purchase plan has yet to be put into effect. Spain is the first country being looked at as a possible recipient of the bond purchases, yet the Spanish government has so far refused to ask for a bailout from the ESM that would be required for bond purchases. Draghi will hold a press conference to discuss the decision at 13:30 GMT.

Cutting the interest rate is considered currency negative, so the as-expected hold of the interest rate had no significant effect on currency trading. The Euro fell about fifty points against the US Dollar earlier in the session, dropping to 1.2750. Support could now be provided at 1.2740, by the 38.2% retracement of the rally from July through September.

EURUSD 15-minute: November 8, 2012

The_ECB_Keeps_Benchmark_Rate_at_0.75_Despite_OMT_Standstill_body_eurusd.png, Forex News: The ECB Keeps Benchmark Rate at 0.75%, Despite OMT Standstill

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

DISCLOSURES