Talking Points:
-ECB leaves rates on hold at 0.25%, Marg. Lending Fac. at 0.75%, Dep. Fac. Rate at 0.00%
-ECB says one QE available, was discussed at the meeting
-ECB discussed cuts to main rate and deposit rate
-Council unanimous on using unconventional tools if they are needed
-Exchange rate is very important for price stability
-Narrowing rate corridor was also discussed by the council
-Such tools must be in line with mandate
-ECB has not yet finished with conventional measures
-ECB ready to act swiftly if needed
-Risks stated: financial, EM, geopolitical
-ECB does not exclude further monetary policy measures
-ECB watching money-market developments closely
-Inflation to get closer to 2% by the end of 2016
-Inflation to pick up ‘somewhat’ in April
Mr. Draghi remained upbeat at the April ECB meeting press conference once more and remained confident in regards to increasing price levels closer to the 2% target over the coming months and years. Nevertheless, the central bank head did comment on possible moves by the ECB to engage in QE measures if they were absolutely needed. Although the Euro saw strength amid Draghi’s initial statements, comments on QE and the Euro exchange rate helped add to downward pressure. When the central bank head mentioned negative deposit rates and a narrowing of the rate corridor, the Euro took out intraday lows towards the 1.37 level.
EUR/USD April 3rd, 2014 (5-Minute Chart)

Source: FXCM Marketscope
Gregory Marks, DailyFX Research Team
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