The ECB left monetary policy unchanged during its June meeting. Interest rates were kept at record-low levels and the PEPP to continue through until at least end of March 2022, however at significantly higher pace , but this will not harm policy stance. Central bank reaffirms the size of PEPP at € 1.85 trillion and APP to continue at a pace of € 20 billion per month. Central bank expects rates to remain at present levels or lower until inflation outlook has robustly converge to a level sufficiently close to, but below, 2% within projection horizon. Investors will focus now on ECB President Lagarde comments at the press conference regarding the economic outlook, inflation and fiscal stimulus.
EURUSD -nitially currency pair rose after ECB rate decision however sellers manage to quickly regain control and price is testing 50 SMA (green line). Source: xStation5