US Dollar Reaction To ECB Decisions

Frankfurt (June 6)  Yesterday, on June 5th, a major event took place. The European Central Bank announced a series of measures following the 2-day meeting. The measures are aimed at monetary easing. Apparently, this should have pressed the common currency. However, the common currency didn't decline a lot against the US Dollar and other majors, Market Leader reports.


It should be noted that the ECB made a series of key decisions. The list includes:


Cutting 3 short-term interest rates, including the refinancing rate from 0,25% to 0,15%, the margin credit rate from 0,75% to 0,40% and the overnight deposit rate  from 0,0% down to -0,10%;

- backing 4-year refinancing operations, TLTRO;

- introducing the ABS asset-backed purchase program;

- suspending the weekly SMP program.


During the first part of the European trading session, the US Dollar was losing value against all other majors. The Euro gained 0,04% versus the Dollar to touch 1,3618.