ECB decision fairly uneventful - TD Securities

By FXstreet.com | July 03, 2014 AAA

FXStreet (Łódź) - Jacqui Douglas, Senior Global Strategist at TD Securities, remarks that ECB's monetary policy decision was devoid of fireworks today , with nothing there to change the view on policy over the coming months and quarters.

Key quotes

"Rates were unchanged, the forward-looking language was unchanged, but Draghi did announce that as of 2015, ECB meetings will be switching from monthly to every 6 weeks, and that the ECB has finally agreed to begin publishing minutes from its policy meetings as of January 2015."

"The bigger market reaction today by far was driven by another strong nonfarm payrolls report, pushing the USD and rates higher across the board as Draghi’s press conference got underway."

"However, the EUR did still manage to drift lower through the press conference despite any obvious catalysts, as FX markets seemed to follow “the trend is your friend” mantra."

"The EUR saw another small push lower when Draghi discussed how the EUR is a more obvious driver of inflation trends right now than it has been in the past, so it will be looked at 'with great attention.' The ECB meeting has come to a close with EURUSD continuing to trade around its lows of the day, just above 1.36."

"The ECB is in cruise control for now, as it waits for the additional accommodation from the June rate cuts and from the upcoming TLTROs to feed through into stronger growth and higher inflation, and as it sorts out the details of a potential support program for ABS markets."

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