ECB Monetary Policy Triggered Market Volatility

The ECB decided that the interest rate will remain unchanged. EURUSD raised first as the ECB hinted this monetary policy. Mario Draghi delivered his remarks on monetary policy outlook but didn’t discuss about rate cuts during the press conference, which confused the market and affected the market confidence in the central bank’s interest rate cut decision. Gold price, US Dollar and crude oil price raised after ECB interest rate decision but dropped quickly after Draghi’s speech.

The mainstream of the market is still the Fed’s interest rate decision next week. Whether to cut interest rates by 25 or 50 basis points has become the focus of the market, especially after the ECB’s confusing and ambiguous monetary policy statement.

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