BREAKING: EUR strengthens as ECB rise rates by 50bp

European Central Bank (ECB) has just announced its latest monetary policy decision. ECB lifted interest rate for the first time in eleven years to 0.50%,more than market consensus of 0.25%.  ECB said it is appropriate to take a larger first step on its policy rate normalization path than signaled at its previous meeting.

• Deposit facility rate 0.00% vs -0.25% expected
• Main refinancing rate 0.50% vs 0.25% expected
• Marginal lending facility 0.75% vs 0.25% prior

ECB approved Transmission Protection Instrument (TPI), a new bond-buying scheme that aims to stabilize the bond market and avoid big jumps and disparities in borrowing costs across countries. The establishment of the TPI is necessary to support the effective transmission of monetary policy. Frontloading strategy allows ECB to make a transition to a meeting-by-meeting approach. Now investors' attention will focus on ECB Lagarde press conference at 1:45 pm BST. 

EURUSD rose sharply after ECB decision and is approaching 1.02750 resistance.Source:xStation5