Yesterday, the spotlight fell on the ECB, which decided to signal a QE tapering after September and a clear end to the program in December. However, its guidance on interest rates disappointed those expecting a hike in mid-2019 and thereby, the euro came under massive selling pressure. Overnight, the Bank of Japan kept its policy unchanged, but downgraded its language on inflation.
ECB Signals Tapering; Interest Rates Untouched “at Least Through Summer 2019”
The euro tumbled against all the other currencies yesterday following the ECB policy decision. The common currency underperformed the most against USD, JPY and GBP in that order, while it lost the least ground against SEK and NOK.
Yesterday, the big event was the ECB policy decision. The ECB decided to keep monetary policy unchanged, but signaled that after September it will reduce the pace of its asset purchasing program to EUR 15 billion until the end of December, when the program will end...
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