ECB Interest Rate Decision (ECB): The central bank left rstes unchanged as expected!

The European Central Bank (ECB) has announced its latest interest rate decision, leaving interest rates unchanged at  2%, after seven consecutive rate reductions. The decision comes as the ECB awaits more clarity regarding the trade outlook with the US and how it could impact the Eurozone economy. 

Of note, the ECB noted that domestic price pressures has continued to cool and wages are growing more slowly. The central bank considers that the economy has so far proven resilient despite the uncertainty brought about by Trump’s trade policies. The ECB reiterated its meeting by meeting and data dependent approach.

The market reaction has been muted as the market continues to expect one more rate cut from the ECB this year.. Attention will turn to ECB President Christine Lagarde’s press conference.

EURO VS DOLLAR (EUR/USD):

If we take a closer look at the technicals, we can observe how the price was trading -0.15% at 1.1750 before the rate decision, and post the decision the price is unchanged.. On the 4-hour chart, the price broke out above its falling channel extending gains to 1.775 before esing modetsly lower. Buyers will loook to rise above 1.1775 to extend the bullish recovery.

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EURO STOXX 50 (EUR50):

The EURO STOXX 50 has seen little volatility from this ECB interest rate decision. Before the announcement, the price was trading +0.5% at 5370. The price has fallen modestly to 5365 following the announcement. On the 4-hour chart, the price trades within a familiar range. The recent recovery from the 5275 low has taken the price above the 200 SMA and the short term falling trendline. If the price holds these supports a move towards 5465 could be on the cards. A break below could see a re-test of 5275,

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