Contrary to some bets that the ECB would need to cut interest rates to help stimulate the eurozone economy, the central bank is holding steady. As a result, the euro is receiving a small boost in the markets, heading a little bit higher
Thanks to recent economic data, especially inflation data, there are concerns about what could be next for the eurozone. The European Central Bank has been expected to take action, and there was some speculation that the ECB would reduce rates by 10 basis points. However, when the central bank announced its decision, no change was made. This resulted in a bit of a boost for the euro.
The euro’s gains have been further boosted by ECB President Mario Draghi‘s press conference. He analyzed the economy and found that more growth is expected, but also cautioned that the euro area’s risks are to the downside, thanks to the geopolitical situation — particularly with Ukraine. However, the press conference only served to further boost the euro.
At 14:14 GMT EUR/USD is up to 1.3812 from the open at 1.3730. EUR/GBP is up to 0.8269 from the open at 0.8213. EUR/JPY is up to 142.4345 from the open at 140.4605.
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