As widely expected, the European Central Bank left its key lending rates unchanged but followed up with extremely dovish comments during the press conference. President Mario Draghi gave the markets what they were looking for by citing that the ECB could consider expanding on its current quantitative easing program in the December ECB meeting where the staff economic projections are also set to be released. While no specifics were mentioned about extension or expansion of the existing asset purchases, the weak external situation was given as a rationale for caution. The Euro fell on the comments after staying flat near 1.1300 for most of the session, eventually closing at 1.1100, a well-known level of support. Looking ahead, the Eurozone flash PMI numbers are due out later today, although not much of a reaction is expected.
ECB To Decide on QE Expansion in December
Daily Analysis - 23/10/2015