Skip to Content
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. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
ECB Leaves Interest Rates Unchanged, Boosts Liquidity - Is It Enough?

ECB Leaves Interest Rates Unchanged, Boosts Liquidity - Is It Enough?

Nick Cawley, Senior Strategist

Share:

What's on this page

ECB Meeting and EUR/USD Price, News and Analysis:

  • ECB surprises and leaves all interest rates unchanged.
  • Coronavirus pandemic forces central banks to act.

ECB Monetary Policy Decision: Interest Rates Unchanged, Liquidity Boosted

The European Central Bank left all of its interest rates unchanged Thursday. Markets had priced-in an additional 10bps cut to the deposit rate. The central bank also announced new liquidity measures, adding a ‘temporary QE envelope’ of EUR120 billion extra of bond buying until the end of 2020. The ECB also announced a new LTRO to provide additional liquidity until the next round of TLTROs are announced in June this year. It waits to be seen if the ECB has done enough to help stabilize an economy roiled by the coronavirus.

ECB Monetary Policy Decision

Before the ECB decision, news outlets were reporting that Germany is ready to ditch their long-standing balanced budget stance to combat the coronavirus, suggesting new fiscal measures from the Eurozone’s largest member state.

ECB Could Double Down on TLTROs to Combat Coronavirus Market Meltdown

EUR/USD Outlook: ECB Must Act Decisively as Recession Looms and Markets Collapse

EUR/USD price action suggests that ECB President Lagarde will be in for a tough time at the upcoming press conference with the pair jumping on the announcement, only to fall back to make a fresh low for the day.

EUR Forecast
EUR Forecast
Recommended by Nick Cawley
Download our Q1 Euro Forecast
Get My Guide

EUR/USD One Minute Price Chart (March 12, 2020)

For all market moving data and events please the DailyFX calendar

EUR/USD Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 0% -6% -3%
Weekly 5% -4% 1%
Learn how to use Sentiment in your trading strategy
Get My Guide

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on the ECB’s decisions today – enough or not? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES