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
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
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
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
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • US Trade Representative Lighthizer and Trump adviser Kushner to fly to Mexico on Tuesday as part of effort to finalize #USMCA trade pact
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Silver: 0.26% Gold: 0.11% Oil - US Crude: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/q0FVtwWQqD
  • USD/CAD responded downtrend support AND resistance into the open of the month and the immediate focus is on a break of last week’s range for guidance.Get your $USDCAD technical analysis from @MBForex here:https://t.co/UMQy6VxK2i https://t.co/3vw7NWW0NG
  • What is the Strait of Hormuz? How is it the world's most important #oil checkpoint? Find out from @JMcQueenFX here: https://t.co/gRVxRWUnNQ #OOTT #CommoditieswithDailyFX https://t.co/djQFdGg2ew
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.95%, while traders in US 500 are at opposite extremes with 76.85%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/L77tlWSifj
  • RT @Schuldensuehner: Recession fears are over. Which might not be good, BBG‘s Authers writes. The last time Google Trends saw a peak in rec…
  • US Equity Close: $SPX -0.32% $DJI -0.37% $NDX -0.4% $RUT -0.4% $VIX +16.3%
  • Canadian #Dollar Outlook: $USDCAD Bears Emerge, but Can they Drive? https://t.co/FUQrFo5Eey https://t.co/ZAif9YLMxL
  • Stay tuned for my Nordic tech outlook for the week ahead: - #EURSEK Testing 8-Month Lows, Eyeing 2013 Uptrend - #GBPNOK Trading at 3-Year Highs: Correction Ahead? - #EURNOK Uptrend on Verge of Collapse - #USDSEK: Has the Pair Bottomed Out?
  • New Zealand ANZ's Truckometer for December slip -1.5% from +2.5% previously
EUR/USD Lower as ECB Minutes Reaffirm Possibility For Stimulus

EUR/USD Lower as ECB Minutes Reaffirm Possibility For Stimulus

2016-02-18 13:16:00
Oded Shimoni, Junior Currency Analyst
Share:

Talking Points:

  • The Euro traded lower versus the US Dollar
  • ECB to review monetary policy in March when new macroeconomic projections would be available
  • Oil prices dampened outlook for inflation in 2016

Find Key Turning Points for the EUR/USD with DailyFX SSI.

The Euro traded lower versus the US Dollar (at the time this report was written) after today’s ECB Meeting Minutes reaffirmed the possibility for further easing at the next policy meeting. In their latest January policy meeting, the ECB kept policy unchanged with asset purchases remaining at a pace of €60 billion per month until March 2017, with main rate at 0.05% and the deposit rate at negative -0.30%. The decision to keep policy unchanged came after the central bank provided further stimulus at the December meeting, which led to a surge in the Euro, presumably due to the bank not meeting market expectations for more aggressive measures.

Looking in to the January account of the meeting, the bank emphasized risks stemming from china, emerging markets and lower commodity prices, which caused risk aversion in the markets. The bank said that the sharp decline in oil prices had significantly dampened the inflation outlook for 2016 in the euro area, which could turn negative for a number of months. Furthermore, the ECB expressed concerns over the outlook for external demand due to weakening global growth. While the bank emphasized that current monetary policy is working, downside risks had increased from the start of the year, which would require the bank to review, and possibly reconsider, the monetary policy stance at March when new macroeconomic projections would be available. The bank reaffirmed that policy rates would remain at current or lower levels for an extended period of time, and that there is a range of policy options in order to achieve a rate close to, but below 2% inflation.

As was mentioned today by DailyFX Currency Strategist Ilya Spivak, the market has been on the lookout for clues on possible expansion of stimulus at the March meeting. The Euro has been selling off since the start of the European session, perhaps in anticipation for further clues on stimulus. The comments in the meeting seemed to at least reaffirm the possibility for further measures, and the Euro traded lower versus the US Dollar.

EUR/USD 5 minute chart

EUR/USD Lower as ECB Minutes Reaffirm Possibility For Stimulus

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

DISCLOSURES

News & Analysis at your fingertips.