Breaking: EUR/USD rises as high TLTRO rate outweighs interest rate guidance
|The ECB left its rates unchanged and committed to holding low rates through the first half of 2020. EUR/USD initially dipped but then recovered as the funding scheme to banks (TLTRO) has a positive interest rate of 10 basis points. The choppy moves continue.
The European Central Bank was expected to announce a new funding scheme with generous conditions to banks (TLTRO). The ECB has previously pledged to maintain low rates until at least the end of the year. President Mario Draghi will unveil the bank's new growth and inflation forecasts later on – minor downgrades are expected.
EUR/USD was trading below 1.1250 ahead of the all-important decision.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.