ECB continues to depreciate the EUR

Source: Dukascopy Bank SA
On April 14, the European Central Bank kept its base rates in the negative zone and revealed that it would end asset purchases only in the third quarter of 2022.

The news indicate that the rampant inflation in the European Union is set to continue, and the value of the Euro is going to decline.

Quoting the statement: "Inflation has increased significantly and will remain high over the coming months, mainly because of the sharp rise in energy costs.

At today's meeting the Governing Council judged that the incoming data since its last meeting reinforce its expectation that net asset purchases under its asset purchase programme should be concluded in the third quarter. "

Released Document

Monetary policy decisions

The news caused a drop of the Euro. The EUR/USD plummeted more than 50 base points in less than ten minutes.

On a larger scale, the EUR/USD has been declining since the United States hinted at monetary tightening, which is strengthening the USD. Meanwhile, the ECB has continued to create additional supply of the Euro. It has resulted in a loss of value of the Euro of almost 12.00%, compared to the US Dollar.

Initial Reaction

Larger scale situation

Back to articles

Actual Topics

Tue, 19 Apr 2022 11:22:10 GMT

18.04.-22.04. European PMIs and Canadian Consumption

On Wednesday, the Canadian Consumer Price Index data is set to impact the value of the Canadian Dollar by revealing the changes in local prices in Canada. On Thursday, the weekly US Unemployment Claims at 12:30 GMT might cause a minor USD move. On Friday, at 06:00 GMT the value of the GBP could adjust to the UK Retail Sales

Wed, 13 Apr 2022 14:14:19 GMT

Bank of Canada hikes rates to 1.00%

On April 13, the Bank of Canada published its monetary policy statement. The central bank hiked its interest rate from 0.50% up to 1.00%, which was an expected 50 base point hike. Moreover, the bank stated that more increases are to be expected, as inflation continues to surge. Meanwhile, the statements of the central bank were seen variously by market participants.

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.