Draghi talks, markets walks south

ECB Monetary policy decisions 10 March 2016.. "At today's meeting the Governing Council of the ECB took the following monetary policy decisions:
 
March 10, 2016 - PRLog -- (1) The interest rate on the main refinancing operations of the Eurosystem will be decreased by 5 basis points to 0.00%, starting from the operation to be settled on 16 March 2016.

(2) The interest rate on the marginal lending facility will be decreased by 5 basis points to 0.25%, with effect from 16 March 2016.

(3) The interest rate on the deposit facility will be decreased by 10 basis points to -0.40%, with effect from 16 March 2016.

(4) The monthly purchases under the asset purchase programme will be expanded to €80 billion starting in April.

(5) Investment grade euro-denominated bonds issued by non-bank corporations established in the euro area will be included in the list of assets that are eligible for regular purchases.

(6) A new series of four targeted longer-term refinancing operations (TLTRO II), each with a maturity of four years, will be launched, starting in June 2016. Borrowing conditions in these operations can be as low as the interest rate on the deposit facility."

End of release

What does all of this mean?

Some of this is what was expected, so it is built in (a little). In the next few hours we should see a little more drop followed by a rise to about where it started (or above) muted by the fact that the fed does their job (or not)in 6 days, and that should bring the pair down even more. So we scalp down off of the rises then get out by Monday afternoon. and wait for the US FED on Wed.

Nathan Gaub

Update::

Draghi mention that there may not be any more rate cuts and the market paniced and went up to ove 1.1200

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