The Euro is analyzing the ECB’s signals. Overview for 08.12.2016

08.12.2016
The EUR/USD pair rose sharply after the ECB announced its decisions, but then plummeted again.

The evening volatility in the main currency pair will continue for a while: instant responses are over, now it’s time for a detailed analysis. The current quote for the instrument is 1.0738. The local high was at 1.0874, the local low – 1.0724.

So, the European Central Bank made a decision to keep the interest rate unchanged, at zero, by leaving the deposit rate and margin loan rate intact. Such decision was expected.

What the ECB said later surprised the market. The QE program will continue as expected, i.e. 80 billion EUR per month until April 2017, and later – 60 billion EUR per months until the end of 2017. “Or even later” – emphasized the CB, keeping some room for future maneuvers.

The market expected the QE program to continue not longer than September 2017. Such long period made investors think: it appears that some aspects of the QE program are neither depleted nor even used until now.

A bit later, Mario Draghi, the Governor of the ECB, will speak. His speech should provide any hints about future actions of the regulator. But right now, there isn’t too much optimism for the Euro.
 
RoboForex Analytical Department

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