So the ECB has cut the deposit rate by 10bps from -0.2% to -0.3% in line with our expectations. What followed was a lot of market volatility as the many media sources wrong reported that the ECB had left rates unchanged. It appears after initially climbing to 1.0650 on the news, the EURUSD then plummeted to 1.0526 where it found support and now trades around the 1.0685 mark.
Interestingly enough, a minute before the announcements, the FT tweeted incorrectly that the ECB left rates unchanged. They then deleted and fixed this….
A word of caution before the Bulls celebrate prematurely, you still have a conference ahead, where it is entirely possible that more QE is announced. Possibly an additional 10, taking the monthly total from 60bn to 70bn. So just be careful and pay attention to that.
As always, Good luck everyone,