Yesterday was held the meeting of the European Central Bank at which it was decided to change the interest rates and to start the program of LTRO for 400 billion EUR to support the real economy and to fight against deflationary risks. Deposit rate became negative and made -0.1%, while credit rate fell to 0.4% vs. 0.75%.
These steps of regulator should support the stock markets and lead to a decline in the euro. The main purpose of monetary easing is to fight with low inflation, which leads to a reduction in business activity and the deterioration in the labor market.
We anticipate further decline of euro with long-term goal near 1.34.
Wish you the profits!
FXFINPRO Capital Analytical department.