US Dollar Reaction To ECB Decisions

June 6, 2014

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.

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