Home Market News Forex Euro Reduces Early Session Losses following ECB Meeting; Market Waiting for EU...

Euro Reduces Early Session Losses following ECB Meeting; Market Waiting for EU Summit Conclusion

26
0

The euro traded largely unchanged during the early session hours versus its major pairs, regaining most of its previous losses after the European Central Bank, as predicted, made no adjustments to monetary policy.

The European Central Bank left key interest rates stable and said that it will hold them at current levels, at least until the end of 2019, while also echoing that it intends to continue reinvesting the principal payments from its now concluded bond-buying system for an “extended period” past when it does announce another a rate increase.

As anticipated, the ECB continued to be downbeat on the fiscal outlook for the region. “The risks surrounding the euro area growth outlook remain tilted to the downside, on account of the persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets,” Mario Draghi stated.

Draghi added that particulars of the focused longer-term refinancing actions (TLTROs), will be conveyed at one of the future central banks gatherings. Still the ECB leader said the odds of a recession in the euro area continue to be minimal, reacting to a question at a news conference.

The euro was last trading at $1.1268, up from $1.1262 Tuesday afternoon.

Elsewhere, United Kingdom Prime Minister Theresa May will meet with European officials in an effort to delay the Brexit deadline to June 30th, after the EU Parliament meetings have concluded. Even so, EU Council President Donald Tusk has suggested that he may recommend a lengthier extension in order to refrain from additional emergency-type meetings. If a deal is not arrived at, the default decision would be for the United Kingdom to leave the EU on Friday without a bargain.

The British pound was last trading higher in opposition to the dollar at $1.3098, up 0.4%.

In U.S. financial news, the inflation data for March revealed that consumer prices increased 0.4%, meeting the expectations of polled economists. The ICE Dollar Index dropped slightly on Wednesday, trading at 96.955. The USD is striving to avoid a 3-day drop.

To close out a busy day on the financial calendar, the Federal Reserve will release the minutes of its most recent policy meeting this afternoon.

LEAVE A REPLY

Please enter your comment!
Please enter your name here