HotForex - Analytics

    HotForex

    495.00 8.50/10
    69% of positive reviews
    Real

    MARKET ANALYSIS AND NEWS ECB: 30% more QE and lower rates Market News

    EURUSD,

    ECB’s Draghi finally delivers his bazooka. The ECB went all out today with rate cuts, more QE and further long term refis. The deposit rate was cut by 10 bp to -0.40%, from -0.30% previously. This was the minimum markets had been looking for but Draghi certainly overdelivered in other areas. The main refinancing rate was cut to 0.00% from 0.05% previously and the top rate cut to 0.25%. The ECB also lifted monthly QE purchases to EUR 80 bln, and expanded the list of eligible assets. Furthermore, the ECB said it will hold more long term refinancing operations. So an attack on all fronts and the DAX jumped in an initial reaction. Bund futures jumped higher, but have fallen back again since.

    The Press Conference takes place at 1:30 GMT and lasts approximately an hour and begins with Mr Draghi reading the prepared statement and then the floor is open to the financial press. It is often during the question and answer session where the most volatility takes place. This is because often the words he chooses to use (or in deed not use) can be interpreted very differently. At the time of writing EURUSD is trading at lower Daily Bollinger Bands and at the levels that caused the pair to turn higher in the beginning of February. The nearest significant resistance levels are at 1.0994 and 1.1070 while the nearest support is at 1.0810 with 1.0778 and 1.0709 not that far below it.

     

    Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

    Janne Muta

    Chief Market Analyst

    HotForex

    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.


    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree