Euro Price Action: ECB Maintains Policy, Euro Remains at Daily Highs
EUR/USD Price Analysis & News
- ECB Keeps Powder Dry with Monetary Policy Left Unchanged
- Euro Unmoved Following Decision
As widely expected, the ECB left monetary policy unchanged with the depo rate remaining at -0.5% and the current pace of QE purchases maintained. The bank also reaffirmed the need for current policy to remain highly accommodative for the foreseeable future. Although, the ECB did note that “If favourable financing conditions can be maintained with asset purchase flows that do not exhaust the envelope over the net purchase horizon of the PEPP, the envelope need not be used in full” which appears to be an apparent compromise for some of the more hawkish members.
EURO MARKET REACTION
Overall, with little surprises in the monetary policy announcement, the Euro saw little in the way of notable price action. That said, the ECB did remove the statement (vs December) that they will “continue to monitor developments in the exchange rate with regard to their possible implications for the medium-term inflation outlook”. However, while this may signal ease with the current level with the exchange rate, Lagarde will likely reiterate the message that they will continue to watch the currency in the press conference.
EUR/USD Chart: Intraday Time Frame
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