ECB Meeting and EUR/USD Price, News and Analysis:
- ECB surprises and leaves all interest rates unchanged.
- Coronavirus pandemic forces central banks to act.
ECB Monetary Policy Decision: Interest Rates Unchanged, Liquidity Boosted
The European Central Bank left all of its interest rates unchanged Thursday. Markets had priced-in an additional 10bps cut to the deposit rate. The central bank also announced new liquidity measures, adding a ‘temporary QE envelope’ of EUR120 billion extra of bond buying until the end of 2020. The ECB also announced a new LTRO to provide additional liquidity until the next round of TLTROs are announced in June this year. It waits to be seen if the ECB has done enough to help stabilize an economy roiled by the coronavirus.
Before the ECB decision, news outlets were reporting that Germany is ready to ditch their long-standing balanced budget stance to combat the coronavirus, suggesting new fiscal measures from the Eurozone’s largest member state.
ECB Could Double Down on TLTROs to Combat Coronavirus Market Meltdown
EUR/USD Outlook: ECB Must Act Decisively as Recession Looms and Markets Collapse
EUR/USD price action suggests that ECB President Lagarde will be in for a tough time at the upcoming press conference with the pair jumping on the announcement, only to fall back to make a fresh low for the day.
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EUR/USD One Minute Price Chart (March 12, 2020)
For all market moving data and events please the DailyFX calendar
| Change in | Longs | Shorts | OI |
| Daily | -11% | -32% | -25% |
| Weekly | -23% | -43% | -37% |
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What is your view on the ECB’s decisions today – enough or not? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.
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