The market’s immediate reaction to the long-awaited ECB meeting has been one of disappointment. ECB President Mario Draghi confirmed that there will be no extra monetary quantitative easing each month, but the programme will be extended to “at least March 2017.”

The deposit rate has also been cut by a further 0.10%, taking it down to -0.30%. This was not enough to satiate the market, and the anti-climax has sent the euro rallying by over 2% against the US dollar and the pound.

As crestfallen as the markets may be, this means there’s a bright side if you have euros to sell. After prolonged periods of Sterling and dollar strength, the euro is finally showing some strength of its own. How long it lasts depends on what’s still to be found in the fine print of the ECB announcement.

Information courtesy of Currencies Direct
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