The Euro is stable after the ECB meeting. Overview for 13.12.2018
The major currency pair is rather neutral in its response to the ECB’s decision to close the QE program.
EURUSD is barely moving on Thursday evening and not responding to the ECB’s anticipated decisions. The current quote for the instrument is1.1370.
The Interest Rate in the Euro Area remained at 0%, the Deposit Facility Rate – at -0.40%, the Marginal Lending Rate – at 0.25%. The European Central Bank said that the rates wouldn’t be change at least until autumn 2019. Or as long as it takes to keep the inflation stable.
In addition to that, the regulator closed the Quantitative Easing program, which had been operating for about four years. It means that the ECB believes that the European crisis is finally and completely over and leaves the market. At the same time, the regulator will continue reinvesting money from maturing bonds for an extended period of time. As a result, there won’t be anything similar to Twist, the American scenario.
A bit later, the ECB Governor Mario Draghi is going to speak. Most likely, he will tell investors and market players about the future outlook for the Euro Area and the regulator’s possible steps relating to its monetary policy.
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