The ECB elected to keep the deposit rate unchanged at -0.30% at their monthly meeting today. No surprises there and the Euro was also unmoved on the announcement. The following press conference had ECB President Mario Draghi saying their monetary policy would need to be reviewed in light of the increasing risk.
He cited growing concerns over the strength of the global economy as well as geopolitical uncertainty. The review of the current policy is likely to happen in March which suggests more QE is on the cards. The comments have triggered a selloff in the Euro, with GBPEUR bouncing off 1.2920 low to 1.3060 whilst EURUSD has dropped from 1.0920 to 1.08.
Latest FX news by Alastair Sweetman