Market Updates: ECB Leaves the Interest Rate Unchanged, What's Next? - Forex News by FX Leaders

Market Updates: ECB Leaves the Interest Rate Unchanged, What’s Next?

Posted Wednesday, April 10, 2019 by
Arslan Butt • 1 min read

At today’s meeting, the Governing Council of the European Central Bank (ECB) concluded that the interest rate on the principal refinancing transactions and the interest rates on the marginal lending facility and the deposit facility will remain steady at 0.00%, 0.25% and -0.40% respectively. But that doesn’t mean ECB President Mario Draghi won’t have plenty to argue about.

Optimistic Economic Event
Since the March meeting, Eurozone economic figures have shown signs of upholding, though it’s still too early to verbalize the all-clear. For his part, Draghi is expected to change his tone a bit to support the weaker Euro. There’s not much we can do other than wait for the Press Conference.

So far, the EUR/USD hasn’t shown any reaction to this as that’s something everyone had expected. But now, the focus shifts to ECB Press Conference. The pair is facing resistance at 1.1280 and support at 1.1250. Consider taking positions only on breakouts as the sideways channel isn’t too big to yield profits.

Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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