The Dollar has given back the modest gain it made yesterday and a bit more, with the Euro outperforming following the ECB’s policy meeting and press conference.
The EUR/USD cross, which had been broadly stable around 1.123 throughout the morning session, surged 0.6% to near 1.13 – its strongest level since mid-April – following the release of the ECB’s post-meeting statement and President Draghi’s press conference. As expected the ECB left its policy rates on hold but it did turn more dovish on its forward-guidance, now expecting its policy rates to remain unchanged at least throughout the first half of 2020, having previously expected rates to remain unchanged until the second half of 2019. Markets have seemingly interpreted this dovish twist as being positive for the Eurozone economy and therefore the Euro
