Watch the live ECB webcast: ECB President Mario Draghi and Vice-President Luis de Guindos explain the Governing Council’s monetary policy decisions and answer questions.
Today, the ECB announced a cut on deposit facility rates by 10 bp to -0.50% as markets expected. EURUSD breached the 1.10 mark after the decision. Bears are in control in the medium-term as the pair trades below the daily moving averages. Important support now stands at 1.0953 daily low, a break below will encourage more bears to join the action and could drive the price down to 1.0925 YTD lows and then the 1.0838 low from May 11th 2017.
EURGBP is trying to trade below the July 25 low, and a break to this level might send the price to the April 2019 high of 0.8683. For more on the EURGBP, read: EURGBP is at the Mercy of ECB Rate Meeting, What to Expect?
As for the press ECB conference, traders will try to read between the lines to what the appetite is for further stimuli in the months ahead, as the proposed QE program of 20 billion a month was a bit lower than what most banks were anticipated. However, the current and new QE program is open-ended.[vc_video link=”https://www.youtube.com/watch?v=WrwQSFe_Dlo”]