Euro Stagnant After Unchanged Rates; Market Waits for Draghi

Talking Points:

• The Euro was little changed versus the US Dollar
• ECB keeps rates unchanged at 0.05%, Deposit rate unchanged at -0.20%
• The market waits for ECB’s Press Conference for further action

The Euro was little changed versus the US Dollar after today’s ECB rate decision saw interest rates unchanged at 0.05 percent, as expected. The ECB also kept the Deposit rate unchanged at negative -0.20 percent, and the Marginal Lending Facility at 0.30 percent, as expected.

The market has been selling the Euro at the London open today, betting on Euro weakness ahead of the rate decision, even though economists expected no change in rates. DailyFX Currency Strategist Ilya Spivak suggested that the price action probably reflected positioning ahead of dovish rhetoric from ECB president Mario Draghi, who might set the stage for further QE in December in the ECB’s press conference later today.

The market seemed to wait for the press conference before initiating new positions.

EURUSD 5-minute Chart