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
Mixed
GBP/USD
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
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
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
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your market update from @IlyaSpivak here: https://t.co/4lHhHsby56 $XAUUSD https://t.co/JmZxckVHdS
  • Cable (GBP/USD) remains just off its seven-month high print around 1.3165 as traders start to move to the side lines ahead of next Thursday’s General Election vote. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/CpCh13J9ZH #Brexit https://t.co/PIh6WUqbsK
  • (Weekly Technical Outlook) GBP/USD, EUR/GBP, GBP/JPY, GBP/CAD Outlook as UK Election Looms $GBPUSD $EURGBP $GBPJPY #UKelection2019 - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/07/GBPUSD-EURGBP-GBPJPY-GBPCAD-Outlook-as-UK-Election-Looms.html?CHID=9&QPID=917702 https://t.co/iuILHYczJ7
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/WlEFlluGfZ #tradingstyle https://t.co/TkMtJQKatx
  • By issuing debt denominated in $USD, China is making a long-term bet that it will be cheaper to pay back its loans over time in the US Dollar; it believes the value of the US Dollar will fall. Get your market update from @CVecchioFX here:https://t.co/5GO9UrvO4y https://t.co/xV9urXXf48
  • What are some risk trading management techniques? Find out: https://t.co/RShdlDz9RA #tradingstyle https://t.co/M3ASPIHAep
  • #Dow Jones stages impressive recovery on a firm NFP report. #FTSE 100 eyes UK general election. Get your equities technical analysis from @JMcQueenFX here: https://t.co/o28UcG6N3l https://t.co/SwGAaFCFND
  • Why do you require consistency in trading and why does it matter? Find out: https://t.co/f4y1FOOZnM #tradingstyle https://t.co/x5HgYopWc5
  • The USD may rise if the FOMC re-affirms its data-dependent approach and cools 2020 rate cut bets. US retail sales and CPI data may also give the Fed impetus to hold rates. Get your $USD market update from @ZabelinDimitri here: https://t.co/XnDITaDOox https://t.co/A480uVMqF2
  • What tools does the ECB have left to stimulate the Eurozone? Where is the #Euro heading? Find out from Chief Eurozone Economist at Pantheon Macroeconomics Claus Vistesen only on Trading Global Markets Decoded #podcast hosted by @MartinSEssex here:https://t.co/Twr44cZ1GB https://t.co/DXlDH5Cp9e
Euro Dips As ECB Stands Pat At April Meeting

Euro Dips As ECB Stands Pat At April Meeting

2017-04-27 11:50:00
Oliver Morrison, Analyst
Share:

Talking Points

- ECB maintains status quo as expected.

- ECB holds rates at and leaves its QE program unchanged; EURUSD dips

- We’ll now look to press statement and Q&A for hints about ECB’s future plans.

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

Would you like to know more about trading the financial markets? DailyFX’s trading guideshould be your first stop.

The European Central Bank has held interest rates and left its quantitative easing program unchanged in its April rate decision. The move was widely anticipated, owing to still-weak inflation, muted wage growth and an uncertain outlook in the Euro area.

The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively.

In a statement, the Governing Council said it continues to expect the key ECB interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases.

It confirmed that net asset purchases of €60 billion will run until the end of December 2017 or beyond if it “sees a sustained adjustment in the path of inflation consistent with its inflation aim”.

It added: “If the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration.”

Traders will now look for any change in the wording in Draghi’s press statement at 12.30 GMT, which you can watch here, and in the subsequent Q&A for any hints about prospective gradual QE reduction or rate cuts.

While inflation is still weak, the taming of the European political landscape and signs of improving economic data have given traders reason to believe that the ECB is considering how to best structure the tapering process in the future.

On Monday, Reuters reported that ECB policymakers might see scope for sending a small signal in June towards reducing monetary stimulus. This is thanks to the market’s assumption that the pro-European centrist Emmanuel Macron will become France’s next president, thus averting the threat posed by the Euro’s nemesis-in-chief Marine Le Pen.

Reuters cited “three sources on and close to the bank’s Governing Council”, one of whom said: “The discussion will be on removing some of the easing biases… I can’t say how quickly it will happen because that depends on the data.”

The ECB will be pleased by data earlier this morning that showed that Euro-Zone economic sentiment surged in April to the best level since August 2007. However, Draghi could easily play down the optimism following the first round of the French election and suggest markets wait until the second round is done and dusted.

EURUSD has dropped in the immediate aftermath of the ECB’s policy statement.

EURUSD 15-Minute Intraday Chart (April 27)

Euro Dips As ECB Stands Pat At April Meeting

Chart by IG

Volatility may follow on any tweaks in language from Draghi in his opening comments or in the Q&A. Any less-hawkish-than-expected rhetoric could dent the appetite in EUR crosses and boost European stocks.

However, any hawkish surprises could dampen stocks and reinforce the recent upward Euro momentum and help lift EUR/USD towards the 1.1000-level, especially given Dollar weakness. The Greenback was conspicuously unmoved by the long-awaited Trump tax reform proposal was released Wednesday.

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at oliver.morrison@ig.com

Follow Oliver on Twitter @OPWMorrison

If you’re looking for trading ideas, check out our Trading Guides; they’re free and updated for the second quarter of 2017

If you’re looking for ideas more short-term in nature, please check out our IG Client Sentiment Data

Would you like to know more about financial market trading, or to get live coverage of major economic events? TheDailyFX webinar sare for you.

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

DISCLOSURES

News & Analysis at your fingertips.