020 7898 0500Yesterday the markets were dominated by the ECB press conference and any chance that Draghi may hint toward further quantitative easing or a change in the ECB’s interest rate. The ECB decided to leave the interest rate on deposits from commercial banks unchanged at -0.4% and leave their bond-buying stimulus scheme unchanged. Draghi did, however, go on to explain that they will be closely monitoring developments in inflation and his expectation is that they will remain low for the next few months. This negative sentiment saw the euro strengthen by 0.8 cents against sterling. Losses against the US dollar were minimal, however, despite high levels of market volatility.
Today will see the release of a number of low-tier pieces of data for the Eurozone, including Germany’s trade balance and the French government’s budget balance. Additionally, the Eurogroup meetings – the discussion of a range of financial issues by finance ministers from the Eurozone – are due to take place today, adding to potential market volatility.
