On 5th, the ECB (European Central Bank) had a council meeting and set the deposit facility interest rate to be negative. After the announcement, EUR/USD fell to 1.356, and as the press conference started, the rate became 1.3503, but the euro was bought afterwards and now it’s traded at around 1.366, which is higher than the rate before the meeting.

The most significant decision in the meeting is the €400 billion TLTRO (Targeted Long-term Refinancing Operation), which will expand the monetary base by about 34%. Continue reading ECB expands the monetary base with negative rate and LTRO →