Yesterday was a big day in Europe, as the BoE and the ECB delivered their announcement on interest, which was kept unchanged as expected. But the spotlight also fell on one neighbouring country’s central bank, which raised their rates by 625 basis points, in order to try and control inflation.
AS EXPECTED, RATES REMAIN THE SAME.
Yesterday, was the central bank day in Europe, where we had the BoE, the ECB and the Turkish central bank announcing their interest rate decisions. The only one who raised the rates was Turkey, due to certain economic circumstances. The BoE and the ECB, as expected, kept their rates the same at +0.75% and 0.00% respectively.
In regards to the ECB, yesterday they lowered their growth forecasts of the European economy for the remaining of this year. In addition to that, Mario Draghi said they are planning to slowly phase out easy money. The ECB have plans to cut their €2.5 trillion quantitative easing program by the end of the year.
The euro was trading unchanged during the interest rate announcement. It was expected that the rate will stay the same, at least till the summer of 2019, so the euro stood still in anticipation of Mario Draghi’s press conference. This is when the euro moved higher, once the president started giving his summary of the economic outlook, where the tone of his voice sounded confident and reassuring.
EUR/USD – TECHNICAL OUTLOOK
The EUR/USD blasted to the upside, yesterday, during the ECB president’s speech. The pair broke through its important resistance of 1.1660 and closed above it, this way signaling a ...
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