European Central Bank decides on date of QE exit with euro reversing downwards

Posted 14 June, 2018

The European Central Bank has expectedly announced winding down of the QE after its monthly meeting. The deadline has been set for late December. Besides, the regulator will also reduce asset-buying programme from EUR 30 billion to EUR 15 billion beginning from October.

However, the ECB representative stated that the asset buying would still be based on the economic data.

As the market expected, the Central Bank has left core rate at 0% and marginal rate – at 0.25%. Besides, the deposit rate stayed at 0.4% as before. The ECB said that it would not revise the rates at least till summer 2019 adding that the rates depend on stable inflation.

It seems that the players keep sticking to the policy "buy for rumour sell for a fact". Specifically, the euro has been hiking lately, but when the market forecasts regarding the ECB meeting come true, investors have decided to bank profit.

As a result, the euro-to-US dollar exchange rate had peaked at 1.1851 and then reversed plugging to some 1.1730. 

As commented one of the market experts, the QE exit may be positive for the euro, though the market seems to consider the mentioned dependence of the QE shutdown on coming economic data as some kind of soft position. In this situation, the speech of Mario Draghi can be moderate as well. He is anticipated to give more details of the exit. 

Previous story

14 June, 2018 16:40

← US Coinbase inaugurates Index Fund

Coinbase, major US-based crypto trading platform, inaugurated new index fund product targeting large investors. According to the reports, the Coinbase Index Fund became available for investors on Wednesday. The minimal amount of investment has been set at $250,000. This fund opens access to assets available on the exchange, including the leading coins...

US Coinbase inaugurates Index Fund

Next story

14 June, 2018 14:41

Thai authorities about to pave way for 5 ICOs →

Five ICOs are about to get approval in Thailand this month once the law on cryptocurrency and ICO becomes effective in June. The head of the corporate finance in equity department at SEC stated that they have received applications for approval of 50 ICOs in total, while five of them have already been selected for further consideration.

Thai authorities about to pave way for 5 ICOs
Write a comment
Prove you’re not a bot + 10 = 17