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.
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