The chaps that man the overnight sessions on ForexLive (Mike, Ryan and Adam, you may have seen some of their posts from time-to-time) were in fine form, with plenty of headlines and analysis of the major event overnight, the ECB announcement and Dr. Who’s Draghi’s press conference following. Check this out for the posts.
In a nutshell:
The ECB left interest rates on hold
- Draghi then spoke to reinforce forward guidance, in particular the possible use of unconventional policies if inflation falls further
- He discussed negative interest rates and large-scale bond purchases
- “We don’t exclude further monetary-policy easing”
- The ECB is “resolute” in its determination to keep its easy-money policies in place
- The ECB is “to act swiftly if required”
So, there you have it.
To summarize even further:
- They did nothing. Again. (I sorta thought that would be the outcome)
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There have been reactions, some of them furious, from analysts who expected the ECB to cut rates. But, no point in getting cross about it, though, is there? (Unless you’re concerned in policy formation, then its OK to get a bit involved I suppose … I do with Australian policy sometimes).
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So, what about the EURO?
Net it dropped a bit.
For today, the markets now await the NFP figures from the US, which should set the tone for the next move. A strong figure should be a further negative for the euro.
