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ECB keeps key rates on hold but strikes a dovish tone - Investec

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Delhi) – Research Team at Investec, notes that yesterday afternoon we saw the ECB keep all key rates, and their QE program, unchanged as expected.

    Key Quotes

    “During the subsequent press conference ECB President Draghi struck a dovish tone, noting that downside risks have increased since the start of the year and that inflation is expected to remain low or even negative in the coming months.

    On policy Draghi stated that interest rates will remain at the same level or lower and perhaps most importantly that the ECB will reconsider its policy stance in March. The Euro lost ground across the board, but perhaps more importantly caused some relief rally across stocks and commodities.

    Whether the Euro selling was against stocks and commodities, or whether Draghi's seeming ability to do 'whatever it takes' gave investors’ confidence, the results were the same. Oil prices managed to recover to $30 a barrel while stock indexes recovered a move that continued into overnight trade.”
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