The ECB meeting results
- Deposit rate, fact -0.40%, forecast -0.40%.
- The margin lending rate of the ECB, fact 0.25%, forecast 0.25%.
- Interest rate decision (June), fact 0.00%, forecast 0.00%.
According to the ECB meeting results, key interest rates remained unchanged. At the same time, the tone of the protocol and the subsequent press conference of the ECB Head Draghi turned out to be less soft than expected. Thus, the Eurozone Central Bank confirmed that the ECB remains determined to act if necessary and will adjust its instruments. At the same time, there was a slowdown in inflation in the 2nd and 3rd quarter.
At the same time, the general tone of the ECB turned out to be very restrained and practically did not contain dovish notes indicating further easing of monetary policy. The same was with the RBA or the statements of the Fed. Therefore, this ECB protocol supported the single currency, putting it at this stage as more profitable and less susceptible to decline from the Central Bank of the eurozone.
The euro has strengthened noticeably across the market. The EUR/USD pair has updated the last months high on optimism. It should be noted that clearly negative signals from the ECB did not sound, as there were no positive signals. This actually limits the growth of the euro in the future, especially given the general overbought euro against the dollar and the preservation of the overall downtrend for this pair. Significant resistance for EUR/USD is the zone 1.1300-20.
Fig. EUR/USD D chart. Current price – 1.1290
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Hanzenko Anton
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