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Draghi sticks to ECB plan and Euro weakens

EURUSD News by Newsroom on 05:27 July 27, 2018 EST

ECB Draghi reiterated the policy path, rates to stay at current level at least through 2019 summer in his press conference on Thursday following the latest ECB meeting.

ECB left interest rates unchanged as expected. Main refinancing rate is held at 0.00%, marginal lending facility rate at 0.25%, deposit facility rate at -0.40%.

ECB President Mario Draghi reiterated that the asset purchase target will be lowered to EUR 10B per month after September, subject to data confirming forecasts. The program will end after December. Interest rates are expected state at present levels through the summer of 2019.

Draghi also said latest stabilization in economic data is inline with forecasts and points to further growth. Risk to growth outlook remains broadly balanced despite prominent threat of protectionism while underlying inflation remains muted for now but is expected to rise gradually in medium term.

Draghi acknowledged that the EU-US trade talks this week was a “good sign” but it’s too early to assess the content of the agreement. Regarding question on Trump’s attack on Eurozone’s currency manipulation, Draghi said it’s known that exchange rate isn’t a policy target of the ECB.

EURUSD fell to the bottom of its current range at around 1.165 while stocks traded generally higher towards the end of the week.