The euro rallied yesterday, perhaps as the ECB appeared less dovish than many may have expected. The Bank pushed back its forward guidance by six months and announced the details of its new series of TLTROs, but investors may have anticipated more. Perhaps a longer extension of the guidance, or strong hints with regards to additional easing measures. As for today, investors will turn their attention to the US employment data in their attempt to figure out whether and by how much the Fed could ease in the months to come.
EUR Rallies as ECB Appears Less Dovish Than Anticipated
The euro traded higher against most of the other G10 currencies and responsible for that was the ECB and its President Mario Draghi. The common currency gained the most against JPY, NZD and USD, while it slightly underperformed versus CAD and NOK, which may have been benefited by the rebound in oil prices.
Yesterday, the ECB decided to keep all three of its interest rates unchanged as was widely anticipated, while the accompanying statement had an even more dovish flavor than the...
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