ECB Leaves Interest Rates Unchanged, Additional Measures TBA by Mario Draghi

The governing council of the European Central Bank is expected to announce "unconventional monetary policy measures" at the press conference

ECB_logoThe European Central Bank has issued a statement outlining that it left interest rates unchanged at today’s meeting. The central bank’s President Mario Draghi will be speaking at a press conference in Frankfurt later today at 01:30 G.M.T. representing the views of the governing council of the ECB in real time.

The euro is consolidating above 1.16, with the bulk of the market expecting a quantitative easing program announcement of some sort. The latest rumors in the run-up to the ECB meeting have been about a bond buying program totalling between €500 and €600 billion, which at this point in time should be priced into the EUR/USD exchange rate.

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If history is any guide, at previous meetings Mario Draghi has always managed to surpass market expectations for monetary policy easing measures. Should the ECB over-deliver this time around, the EUR/USD could hit an 11-year low later today.

That said, Forex Magnates sides with the expectations of the market on this upcoming meeting. We expect a plethora of EUR/USD shorts to cover positions, as the US dollar has been rallying against the euro for seven straight months.

Currently the EUR/USD exchange rate is hovering around 1.1630, close to session highs.

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