ECB leaves policy and guidance unchanged, confirms QE schedule of EUR 30 bln from January to September next year “or beyond, if necessary”. So there is still no commitment to an end date for QE and the statement also re-affirmed that interest rates will “remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases”, which suggests rates hikes won’t be on the agenda until 2019 at the earliest. Furthermore maturing assets will be reinvested until well after the end of net asset purchases, so a reduction of QE holdings won’t be an issue until then either. Not much movement in Bund yields on the announcement and peripheral yields, which dropped on the BoE statement earlier also remains down. The focus now turns to the press conference and here we expect a slightly more hawkish tone as growth and inflation projections are likely to be revised up, although with the overall guidance unchanged clearly Draghi is not ready to commit to an end date for QE just yet.
H1 support is at 1.1796 and the 200 period moving average, with resistance at 1.1844, 1.1862 and 1.1900.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
Senior Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.