ECB Monetary policy decisions | Forex Factory

  • ECB Monetary policy decisions

    From europa.eu

    At today’s meeting the Governing Council of the ECB took the following monetary policy decisions: 1.The interest rate on the main refinancing operations of the Eurosystem will be decreased by 10 basis points to 0.05%, starting from the operation to be settled on 10 September 2014. 2.The interest rate on the marginal lending facility will be decreased by 10 basis points to 0.30%, with effect from 10 September 2014. 3.The interest rate on the deposit facility will be decreased by 10 basis points to -0.20%, with effect from 10 September 2014. The President of the ECB will comment on the considerations underlying these ... (full story)

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NewtonsCash
Sep 4, 2014 6:52am
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Theres never 1 cockroach, the press conference is going to be a doozy
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frx_trader
Sep 4, 2014 7:25am
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Euro meets its faith, going down, down down and vanishing in abyss.
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upasna
Sep 4, 2014 6:54am
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wait for Press conference...
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kuncung
Sep 4, 2014 7:19am
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what about eurchf ? anybody knows
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simply.monty
Sep 4, 2014 8:55am
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1.27 just a matter of time
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Ringkon
Sep 4, 2014 4:29pm
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EUR will go down at 1.20 level with in December. I think so
..
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champoooy
Sep 4, 2014 7:32pm
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The theories of all technical analysis has just been disproved. LOL. Expect no retracement more than 50pips
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jw1981
Sep 4, 2014 7:39am
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Quoting Forex-Queen
I warned two weeks ago eur, gbp sell for next 3 months, at least!
Fruitful! : )
EURGBP, monthly view a descending triangle!!
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dsb104
Sep 4, 2014 6:57am
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Yeah Sub 1.30 now. Inevitable really. Have the ECB got any bullets left?
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duck.forex
Sep 4, 2014 6:50am
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Welcome 1.2900
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Forex-Queen
Sep 4, 2014 6:51am
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I warned two weeks ago eur, gbp sell for next 3 months, at least!
Fruitful! : )
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osmo
Sep 4, 2014 6:58am
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EUR selling fast ...
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cppolybd
Sep 4, 2014 6:59am
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Oooooo I love this come on 1.27
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cppolybd
Sep 4, 2014 7:13am
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Quoting Istiach
Supermario was probably checking the 4H chart
Supermarion haven't started yet :-P
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cppolybd
Sep 4, 2014 10:29pm
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Quoting CoolJL
Anyone been riding this down from 1.4?
I have been riding since 1.37 and target 1.27
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aman4forex
Sep 4, 2014 6:57am
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Upsana ji

What press conference would do. Need clarifications, and Super Mario will confirm that keep you printing machine On forever.

It would have happened much earlier but shocking steps taken earlier and worst scenarios followed afterwards

best regards,
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aman4forex
Sep 4, 2014 3:05pm
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Quoting cristmaster
faith eurousd will go up again 500 pibs is a cycling wave
Hope you catch those moves again and possibly Fed look for weaker dollar as ECB has clear what they expect and they expect much weaker Euro to spur growth . Nothing else can move euro towards 1.3500 area again .
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Spike Surfer
Sep 4, 2014 3:24pm
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Quoting Ursa
Could somebody (knowledgeable) please explain how a negative interest rate works? Does this mean that people put their money in the bank, and the bank charges them for it?
It means that if banks keep their assets with the ECB that instead of earning interest on that money banks are now charged by the ECB to keep their cash with them. (-0.1 %)

The reason for this is basically to force the EU banks to stop sitting on their cash but rather lend more to consumers and businesses so the economy will get a nice injection.
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Ursa
Sep 8, 2014 9:06am
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Quoting Spike Surfer
It means that if banks keep their assets with the ECB that instead of earning interest on that money banks are now charged by the ECB to keep their cash with them. (-0.1 %)

The reason for this is basically to force the EU banks to stop sitting on their cash but rather lend more to consumers and businesses so the economy will get a nice injection.
Thank you for explaining this. I've been riding both the Euro and Cable trends, and doing quite well. This negative interest rate sounds like a recipe for another bubble and bubble burst. Forcing the banks to loan money could lead to people getting loans that don't have any business receiving them. We all found out in 2008 how that works out.
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Spike Surfer
Sep 8, 2014 10:12am
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Quoting Ursa
Thank you for explaining this. I've been riding both the Euro and Cable trends, and doing quite well. This negative interest rate sounds like a recipe for another bubble and bubble burst. Forcing the banks to loan money could lead to people getting loans that don't have any business receiving them. We all found out in 2008 how that works out.
You're welcome.

I too think this will force banks to aggressively promote new loans with very low interest rates and lower their acceptance standards so more lenders get their loans. It simply adds to the deficit because new loans = more debt = more inflation. That's what I meant when I said it would not do inflation any good.

Expect prices to increase in the EU zone. Also remember that Draghi has mentioned his ideal EUR/USD range on numerous occaisions, it's between 1.3150 and 1.3300.

I am bullish on EUR/USD again mid term, but it doesn't really matter one bit for the daily routine I use.

Good luck Ursa.
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Spike Surfer
Sep 8, 2014 10:29am
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Quoting champoooy
The theories of all technical analysis has just been disproved. LOL. Expect no retracement more than 50pips
That technical analysis does not include the occasional ECB and Fed measures like this one. If you can find a way to do THAT, well...

You can guess at but surely not accurately predict such measures. The only way around it is take that unexpected short-term loss if you are on the wrong side and make sure your long term bottom line is not affected.
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berlinbus
Sep 4, 2014 6:55am
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The reaction to this will be catastrophic. The ECB has admitted it has nothing left to encourage growth but chuck the silver at the market.
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CoolJL
Sep 4, 2014 6:48am
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Things must be pretty bad.
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aman4forex
Sep 4, 2014 6:53am
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Easing has started much earlier than expecting followed by worst CPI numbers past week GDP factors are also considered.
Possible Recession
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Istiach
Sep 4, 2014 7:11am
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Supermario was probably checking the 4H chart
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Avello
Sep 4, 2014 7:32am
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it look as if everyone is selling euros however they aint buying dollars, why?
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gabrinis
Sep 4, 2014 7:51am
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QE?
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Kahn88
Sep 4, 2014 8:06am
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EUR/USD Nose Dive. Easy 100+ pips. Next stop 1.28?
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utjuph
Sep 4, 2014 8:19am
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Kinda felt like another prelude to major financial downfall. Another after-subprime-crisis scene all over again. Only happened in another region.

Am I mistaken anyone?
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popindie
Sep 4, 2014 8:21am
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Thank Darki. I got profit from keep sell EJ.
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partyboyzjs
Sep 4, 2014 8:39am
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ej sell sell sell.....got thing....yesh
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partyboyzjs
Sep 4, 2014 9:01am
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well wait it retrace back a bit , n see whether it able to break thru the support line 136.413 for eurjpy if breakthru....short it....
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cristmaster
Sep 4, 2014 10:59am
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f u eurousd, bitches and hores all over the world
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cristmaster
Sep 4, 2014 11:48am
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faith eurousd will go up again 500 pibs is a cycling wave
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Scientist
Sep 4, 2014 12:03pm
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FREE MONEY!!!
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Ursa
Sep 4, 2014 3:05pm
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Could somebody (knowledgeable) please explain how a negative interest rate works? Does this mean that people put their money in the bank, and the bank charges them for it?
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Spike Surfer
Sep 4, 2014 3:27pm
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This is not helping inflation in the Euro zone at all BTW.
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Lover Man
Sep 4, 2014 4:28pm
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Quoting jw1981
EURGBP, monthly view a descending triangle!!
Developing a nice Inverted Hammer on W1
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CoolJL
Sep 4, 2014 7:14pm
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Anyone been riding this down from 1.4?
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Trader#7BBD
Sep 5, 2014 1:34am
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Quoting cppolybd
I have been riding since 1.37 and target 1.27
i salute u, sir for your endurance and believing in your stand for this downward move. guess you believed and follow Mr Draghi words in the past months that at 1.33 was still a high rate for the euro or something else... i only got it from 1.31 down late.
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pipskatcher
Sep 5, 2014 2:51am
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it will be more down atleast 1.2100
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partyboyzjs
Sep 5, 2014 1:50pm
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it will be a down for all eur pair chill....can hold short for long term for any eur pair....in my POV
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CoolJL
Sep 8, 2014 8:48pm
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Quoting cppolybd
I have been riding since 1.37 and target 1.27
Nice!
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Trader#39B3
Sep 4, 2014 6:48am
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0.05???
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Trader#5424
Sep 4, 2014 6:57am
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Quoting dsb104
Yeah Sub 1.30 now. Inevitable really. Have the ECB got any bullets left?
negative interest rate...
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Trader#DC05
Sep 4, 2014 6:59am
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its a good decisions for euro wait its a going 1.4000 coming soon
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Trader#E9C3
Sep 4, 2014 7:00am
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If nothing else, this news completed a great fib move from a 50% retrace to a 161.8% extension on the EUR/USD H4 chart which was setting up since yesterday.

I hope some you caught it.
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Trader#81A7
Sep 4, 2014 3:02pm
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ha ha ha, 1000 euro in 30min!!! Happy Birthday and Thanks Mister Draghi!!!!
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Trader#5424
Sep 4, 2014 5:35pm
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Quoting kuncung
what about eurchf ? anybody knows
we might see more news from SNB: will keep and defend the eur/chf 1.2 peg floor...
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