EURUSD fell after the ECB meeting. Right now, it is trying to recover.
The major currency pair is correcting at the end of the trading week after an unsuccessful Thursday. The current quote for the instream is 1.1119.
During the meeting that took place yesterday, the European Central Bank left all key interest rates unchanged: the benchmark rate at 0%, the deposit facility rate at -0.5%. A negative rate is one of the tools the ECB has to influence its monetary policy, which means that banks have to pay the regulator for keeping their money, but not vice versa. As a result, the ECB motivates banks to invest money in real sectors or businesses, but not very successfully so far.
In the comments, the ECB said that businesses paid attention to the increase of pressure on the value of labor power. It means that conditions on the labor market are getting more complicated and a weak impulse from this sector may slow down the inflating in the future.
According to the regulator, the stimulus programs launched in September will provide the Area’s economy with monetary incentives. Later, it may support households and small companies.
The ECB intends to continue its loose monetary policy for a long time. they said it was necessary for keeping the inflation close to target levels.
Right after the meeting, investors lost interest in the Euro – they decided that the regulator had already run out of fiscal tools and next time it would have to cut the rate.
Orgin: RoboForex
