FOREX TradingCharts.com

Forex News: Euro Muted After ECB Holds Key Interest Rate

Euro Muted After ECB Holds Key Interest Rate Steady

04/10/2019 - 08:28:00 (RTTNews)

(RTTNews) - The euro showed muted trading against its key counterparts in the European session on Wednesday, after the European Central Bank held its key interest rates and forward guidance unchanged amid economic gloom.

The Governing Council, led by ECB President Mario Draghi, left the key interest rates unchanged after the policy session in Frankfurt, as expected.

The main refi rate is currently at a record low zero percent and the deposit rate at -0.40 percent. The marginal lending facility rate is at 0.25 percent.

"The Governing Council expects the key ECB interest rates to remain at their present levels at least through the end of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2 percent over the medium term," the bank said.

The bank also intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the asset purchase programme for an extended period of time beyond the next rate hike, for as long as necessary to maintain favorable liquidity conditions and an ample degree of monetary accommodation.

Draghi is set to hold his customary post-decision press conference at 8.30 am ET.

The currency held steady against its major counterparts in the Asian session, with the exception of the yen.

The euro firmed to near a 3-week high of 1.1285 against the franc at 6:00 am ET and held steady thereafter. This follows a low of 1.1257 hit at 9:30 pm ET. The pair was valued at 1.1260 when it ended deals on Tuesday.

Bouncing back from a 2-day low of 1.1255 against the greenback hit at 9:30 pm ET, the euro rose to 1.1281 in the European session. The euro is seen finding resistance around the 1.14 level.

The European currency stablised at 125.42 against the yen, after having risen from a 2-day low of 125.04 seen at 9:45 pm ET. At yesterday's close, the pair was worth 125.15.

After a brief spike to 0.8634 against the pound at the beginning of today's trading, the euro pulled back to 0.8608 in European trading. Next key support for the euro is seen around the 0.84 region.

Data from the Office For National Statistics showed that the UK economy expanded for the second straight month, but at a slower pace.

Gross domestic product grew 0.2 percent month-on-month in February, while the economy expanded 0.5 percent in January. Economists were looking for growth to remain flat in February.

Looking ahead, U.S. CPI and monthly budget statement for March, as well as the Fed minutes from the March meeting are set for release in the New York session.

At 11:50 am ET, Federal Reserve Governor Randal Quarles will give a speech about the progress on the transition to risk-free rates at the Financial Stability Board Roundtable in Washington DC.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


Dollar Little Changed Following U.S. New Home Sales (06 hr(s), 21 min(s), 32 sec(s) ago)
(RTTNews) - The U.S. new home sales for March has been released at 9:00 am ET Tuesday. Following t ...Full Story»

Euro Little Changed After Eurozone Consumer Sentiment Index (06 hr(s), 24 min(s), 32 sec(s) ago)
(RTTNews) - Following the release of Eurozone flash consumer sentiment index for April at 10:00 am ...Full Story»

Dollar Spikes Up Ahead Of U.S. New Home Sales (06 hr(s), 33 min(s), 31 sec(s) ago)
(RTTNews) - The U.S. new home sales for March are scheduled for release at 9:00 am ET Tuesday. Ahe ...Full Story»

Euro Mixed Ahead Of Eurozone Consumer Sentiment Index (06 hr(s), 33 min(s), 31 sec(s) ago)
(RTTNews) - At 10:00 am ET Tuesday, Eurozone flash consumer sentiment index for April will be out. ...Full Story»

Dollar Advances Further After U.S. House Price Index (07 hr(s), 24 min(s), 32 sec(s) ago)
(RTTNews) - The U.S. house price index for February has been released at 9:00 am ET Tuesday. After ...Full Story»

Dollar Rises Vs Most Majors Ahead Of U.S. House Price Index (07 hr(s), 33 min(s), 32 sec(s) ago)
(RTTNews) - The U.S. house price index for February will be released at 9:00 am ET Tuesday. Ahead ...Full Story»

Loonie Little Changed After Canada Wholesale Sales (07 hr(s), 57 min(s), 32 sec(s) ago)
(RTTNews) - Canada wholesale sales for February have been released at 8:30 am ET Tuesday. After th ...Full Story»

Loonie Falls Ahead Of Canada Wholesale Sales (08 hr(s), 03 min(s), 31 sec(s) ago)
(RTTNews) - Canada wholesale sales for February are due at 8:30 am ET Tuesday. Ahead of the data, ...Full Story»

Search

FOREX NEWS

Dollar Little Changed Following U.S. New Home Sales

04/23/2019 - 10:07 AM (RTTNews)
(RTTNews) - The U.S. new home sales for March has been released at 9:00 am ET Tuesday. Following t ...Full Story>>

Euro Little Changed After Eurozone Consumer Sentiment Index

04/23/2019 - 10:05 AM (RTTNews)
(RTTNews) - Following the release of Eurozone flash consumer sentiment index for April at 10:00 am ...Full Story>>

Euro Mixed Ahead Of Eurozone Consumer Sentiment Index

04/23/2019 - 09:54 AM (RTTNews)
(RTTNews) - At 10:00 am ET Tuesday, Eurozone flash consumer sentiment index for April will be out. ...Full Story>>

Dollar Spikes Up Ahead Of U.S. New Home Sales

04/23/2019 - 09:54 AM (RTTNews)
(RTTNews) - The U.S. new home sales for March are scheduled for release at 9:00 am ET Tuesday. Ahe ...Full Story>>

Dollar Advances Further After U.S. House Price Index

04/23/2019 - 09:03 AM (RTTNews)
(RTTNews) - The U.S. house price index for February has been released at 9:00 am ET Tuesday. After ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.