Categories: Market Overview

ECB slows asset purchases

In its latest statement today, ECB said that it will continue “with a moderately lower pace of net asset purchases” under PEPP, after two quarters of acceleration. At the same time, its volume (€1.85 trillion), as well as key interest rates, remained unchanged.

Key European stock indices are strengthening after the press release as the ECB promised a flexible approach to the volume of monthly purchases based on market conditions. For the markets, this means a stabilisation mechanism in case of deteriorating financial conditions.

The single currency, however, also strengthened gains, rewriting intraday highs at $1.1840. In the EURUSD, the tug of war continues at levels just above the 50-day moving average near 1.1800. The same is true for the DXY dollar index as well as GBPUSD, where bull and bear forces are balanced near key levels. A strong move from current levels could form the basis for a trend right up to the end of the year.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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