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Euro against major falls after European Central Bank rate cut

2019-09-12 01:12 pm | Resource: News | No Views : 26

 Euro against major falls after European Central Bank rate cut

The European Central Bank announced a package of stimulus measures on Thursday, as expected, to boost the eurozone economy at a final pricing session chaired by outgoing President Mario Draghi.

The central bank cut its deposit rate by 10 basis points to -0.50 per cent, while the main refinancing rate and marginal lending rate remained unchanged at 0.00 per cent and 0.25 per cent respectively.

The Board also dramatically changed the wording of its forward guidance. “The Board now expects that the ECB's key interest rates will remain at current or lower levels until it sees inflation expectations converging strongly to a level close enough, but below, 2% above its forecast, This convergence has been consistently reflected in core inflation dynamics. ”

The European Central Bank has restarted its asset purchase program, which had previously ended in December 2018. The bank said it would make monthly purchases of assets worth 20 billion euros as of November 1. The new measures will continue to be implemented as long as necessary to strengthen the softening effect of their policy rates, and to be completed shortly before the ECB's key interest rate hike begins. ”

The Bank will continue to reinvest the proceeds of the securities payable under the application for an extended period of time from which the Board begins raising the ECB's key interest rates, in any case as long as necessary to maintain favorable liquidity conditions and an adequate degree of cash settlement.

Trump: The ECB successfully devalued the euro against the dollar

US President Donald Trump said on Thursday that the European Central Bank "succeeds" in devaluing the euro against the dollar while the Federal Reserve "sits and sits." They said they received money to borrow money while the United States was paying interest. Acting fast, the interest rate is reduced by 10 basis points.

They are trying, and succeeding, to devalue the euro against the very strong dollar, hurting US exports .... The Federal Reserve is sitting, sitting and sitting. Get paid to borrow money while we pay interest! "

Major Currency Trades
  •  The dollar fell to 1.0968 levels against the euro.
  • The euro fell to 1.09023 against the Swiss franc.
  • The euro fell against the yen by 0.45% to trade at 118.20 against the yen.
  • The euro was trading against the pound sterling to trade at 0.8901 dollars.
  • The euro fell against the New Zealand dollar by trading at 1.70362 levels


Other analysis

Best Opportunities, Vision and Technical Analysis for the USD/JPY pair 17 April 2019

We offer you the analysis of the US dollar against the Japanese Yen on Wednesday, April 17, 2019 with the most important expectations for the dollar against the Japanese yen on the market. Time frame Used - four hours The USD/JPY is moving in a bullish direction in the near term. USD/JPY is still facing resistance and selling pressure around 112.10 as the USD-JPY closed yesterday's session down below 112.00…

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