The euro was attempting to rally today but failed and went back down after the monetary policy meeting of the European Central Bank showed that the bank’s outlook remained dovish.
As was widely expected, the ECB did not change its monetary policy during today’s meeting. As for the future, ECB President Mario Draghi said that he expects interest rates “to remain at present or lower levels for an extended period of time.” He signaled willingness to use any means necessary to reinvigorate economic recovery:
The Governing Council will continue to monitor closely the evolution of the outlook for price stability and, if warranted to achieve its objective, will act by using all the instruments available within its mandate.
And it indeed may be necessary to stimulate the economy as the outlook remains pessimistic:
The risks to the euro area growth outlook still remain tilted to the downside.
The euro was rising at the start of the European trading session. The currency was attempting to keep its rally but reversed its movement after Draghi’s press-conference.
EUR/USD rose from 1.1296 to 1.1390 intraday but slipped back down to 1.1291 as of 18:50 GMT today. EUR/JPY traded at 123.66 after rising from 124.06 to 124.92 earlier. EUR/GBP was near its opening level of 0.7881.
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