It wasn't quite an "empty the clip" decision at ECB President Mario Draghi's penultimate meeting, but the Italian has definitely made a dovish impression.

In its highly-anticipated policy meeting, the European Central Bank made a series of decisions to ease monetary policy and try to stimulate the Eurozone economy:

  • Cut deposit rates 10bps from -0.4% to -0.5%

  • Introduced a two-tier system for negative interest rates

  • Restarted Quantitative Easing at €20B/month effective November 1, with no explicit expiration date

  • Announced changes to its Targeted Longer-Term Refinancing Operations (TLTROs)

Many of these changes had already been "priced in" to the market, but the decision around QE is interesting. The €20B monthly pace of purchases was smaller than many analysts had anticipated, but the lack of an explicit termination date makes the announcement more dovish than expected. With inflation subdued, growth stalling and negative interest rates becoming entrenched, is the Eurozone turning into Japan? This is the fear of many traders and explains why the euro has fallen back below 1.10 in the wake of the release.

EURUSD

This research is for informational purposes and should not be construed as personal advice. Trading any financial market involves risk. Trading on leverage involves risk of losses greater than deposits.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD struggling to hold onto 1.10 as USD gains ground

EUR/USD is trading close to 1.10, as the US dollar gradually advances. Two White House advisers expressed contradicting accounts of US-Sino trade talks, causing confusion. Germany refrained from adding fiscal stimulus.

EUR/USD News

GBP/USD trades around 1.25 as EU pours cold water on Brexit hopes

GBP/USD is trading around 1.25, off the two-month highs of 1.2582 as EU officials cast doubts about the seriousness of the new UK proposals on Brexit. 

GBP/USD News

USD/JPY drops to one-week lows on trade war headlines

The USD/JPY fell during the American session following reports that the Montana Farm Bureau said China's delegation has canceled a planned trip to view US agriculture.

USD/JPY News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Ethereum points to the Moon as Bitcoin takes a break

ETH/USD exceeds $220 and is bidding to lead the market. Bitcoin sets a bear trap and recaptures $10,000. XRP stalls between technical levels and fails to consolidate $0.30.

Read more

Gold climbs further beyond $1500 mark, lacks follow-through

Gold edged higher for the second consecutive session on Friday, albeit remained well within a familiar trading range held over the past two weeks or so.

Gold News

Forex Majors

Cryptocurrencies

Signatures