The ECB’s soft stance didn’t scare the Euro. Overview for 13.09.2019


EURUSD is growing a little bit on Friday; investors’ emotions were temporary. 

On Friday, the major currency is quite stable – stable enough to be admired. The current quote for the instrument is 1.1066.

Following the results of its September meeting, the European Central Bank decided to cut interest rates and revive the QE program. However, the key rate remained unchanged. The regulator cut the deposit rate to -0.50% from -0.40%. The rate on the main refinancing operations and the rate on the marginal lending facility also remained the same, at 0.00% and 0.25% respectively.  

Starting November 1st, 2019, the ECB revives the stimulus program in the monthly amount of 20 billion EUR. According to the regulator’s statement, the program will continue as long as it has to for being effective. After the program is over, reinvestments of principal payments will continue for a long time even after the ECB starts increasing the rates. 

At the same time, TLTRO-III will also continue because it is necessary for the regional economy’s transition to soft monetary policy and favorable bank lending conditions. 

At that moment, the Euro fell against the USD, but mostly due to emotions, nothing else. The major currency pair recovered quite quickly and right now is keeping a balance. 

In general, everything was pretty smooth, just like market players predicted and expected. The key thing is that the ECB is aware of risks and ready to work on them.


Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.