ECB holding Interest Rates.
The long-anticipated wait is over. The European Central Bank (ECB) has announced that the rates will remain unchanged. The Government Council of the ECB has stated that the interest rate on the main financing operations, marginal lending facility and the deposit facility will remain unchanged at ).00%. 0.25% and -0.40%. Furthermore, stating that it expects rates to remain “at their present or lower levels” it at least halfway through 2020.
According to the ECB, the bank has already begun to make preparations for a continuation of quantitative easing as it “tasked the relevant Eurosystem Committees with examining options”.
EUR/USD currently trading at 1.1174, with an increase of (0.31%) as writing.
Market reacting as Draghi is exclaiming his concerns for the European economy. Markets are extremely volatile due to the uncertainty surrounding the announcement of the ECB holding the interest rates the same at -0.40%.
Big reversal for the EUR/USD bouncing off the previous support level of 1.11035, rapidly heading towards that 1.1200 mark. Upward momentum may just push past that 1.1200 mark. We could see the euro climbing even further, or trade between those zones.
We will be keeping you updated,
Jaco
