Forecasts
Forex Guides
Members

EUR/USD Update – Draghi Says ECB Rate To Stay Low for ‘Extended Period’



Good day forex traders and readers.

As of now, the EUR/USD is taking a bearish hit and is testing the 1.2880 support. Furthermore with the reduced liquidity due to a closed US market, volatility might be amplified.

The European Central Bank’s stance on an extended period of low interest rate probably devasted sentiments towards the euro currency. As we know, a lower interest rate might cause a loss in demand for the currency and thus a drop in value. Read about the press conference in the Bloomberg report below :

President Mario Draghi said the European Central Bank expects to keep interest rates low for an “extended period of time” as he tries to restrain market borrowing costs and help the euro-area economy.

Speaking after ECB officials today left their main refinancing rate at 0.5 percent, Draghi fleshed out the central bank’s outlook for monetary policy after investors pushed up long-term bond yields, threatening the economy.

“The Governing Council expects the key ECB interest rates to remain at present or lower levels for an extended period of time,” Draghi said at a press conference in Frankfurt. “The risks for the euro area continue to be on the downside. Our monetary policy stance will remain accommodative for as long as necessary.”

With Portugal’s 10-year bond yield yesterday climbing above 8 percent for the first time since November and the Federal Reserve signaling it may withdraw monetary stimulus, Draghi is seeking to assure investors that the ECB has no plans to end its easy policy until economic recovery is assured.

To contact the reporter on this story: Simon Kennedy in London at skennedy4@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net Enlarge image Mario Draghi, president of the European Central Bank, right, and Vitor Constancio, vice president of the European Central Bank, arrive for a news conference in Frankfurt, Germany, on Thursday, July 4, 2013. Photographer: Ralph Orlowski/Bloomberg

Invest In Yourself And Get Premium Analysis
Less than 20 cents a day
Major Currency Pairs Analysis
Forex Sentiment Analysis
Understand The Market
10 days money back guarantee

View Subscription Options

Would you like to connect?
Get notifications on new forecasts and articles.

Sign up to our emailing list and get your FREE Stop Losing and Start Winning in Forex Checklist!

Trending Forex Articles

  • EUR/USD Gold CorrelationEUR/USD Update – Draghi Says ECB Rate To Stay Low for ‘Extended Period’
  • EUR/USD Update – Draghi Says ECB Rate To Stay Low for ‘Extended Period’
  • EUR/USD Update – Draghi Says ECB Rate To Stay Low for ‘Extended Period’
  • EUR/USD Update – Draghi Says ECB Rate To Stay Low for ‘Extended Period’
  • EUR/USD Update – Draghi Says ECB Rate To Stay Low for ‘Extended Period’
  • EUR/USD Update – Draghi Says ECB Rate To Stay Low for ‘Extended Period’
TheGeekKnows