There is a huge agiotage around today’s FOMC meeting…
Highlights of the ECB meeting and press conference.
The European Central Banks left its key interest rates. The Council decided to remain the rates at the present levels for an extended period of time, and well past the horizon of the net asset purchase.
The asset purchase program is left at 60 bln of euros per month. It will be run until the end of December 2017, or beyond, if necessary, until the ECB’s policymakers sees a sustained adjustment in the path of inflation consistent with their target.
- Assets purchases are still need; they will be maintained until sustained inflation around the 2% level.
- There is a stronger momentum in the euro area economic growth
- Risks to the growth outlook is broadly balanced
- If growth projections are distorted, the ECB is ready to increase its asset purchase program in size and duration
- ECB growth outlook has been revised upwards.
- HICP was volatility due to temporal increases in energy and services prices.
- The inflation headline will remain at current level in the upcoming months, there is no convincing sign of pickup
- The ECB policymakers expect only gradually rise in inflation figures
- Inflation expectations are revised downwards, while the growth expectations – upwards.
The euro moved a little bit lower against the USD on the lowering of the inflation estimates by the ECB policymakers.
The Bank of Canada will announce the interest rate tomorrow (March 7 at 17:00 MT time)…
Italian parliamentary elections and German coalition votes started to affect the euro much earlier they were held…
We've got a bearish "High Wave", which has strong confirmation. In this case, the price is likely going to decline.
Growing concerns over Greek bailout, early elections in Italy and comments by the ECB President Mario Draghi about the need to maintain the bank’s extraordinary amount of monetary policy support…
The 144 Moving Average has acted as support, but there's a bearish "Engulfing' at the local high.