WSJ: Euro Edges Higher As ECB Keeps Rates Unchanged
The euro edged higher and government bonds sold off slightly after the European Central Bank kept interest rates unchanged and said it would maintain asset purchases of €80 billion ($90 billion) a month until the end of March 2017, or beyond if necessary.
The euro was last up 0.5% against the U.S. dollar at $1.1300. The yield on 10-year German government bonds edged up to minus 0.093%, up roughly 0.03 percentage point on the day. Yields rise as prices fall.
Investors will now be watching ECB President Mario Draghi’s regular press conference at 12.30 GMT for clues on whether the central bank will tweak the parameters of its bond-buying program. Staff forecasts on the eurozone economy will also be in focus.
The ECB has launched the bond buying program and cut interest rates into negative territory in a bid to increase inflation and push down financing costs across the currency zone.
But the ECB is still far from hitting its primary goal of keeping inflation just below 2%, a target it has missed for more than three years. That has spurred market expectations that the bank will unleash further stimulus.
