Talking Points:

- This morning’s ECB rate decision saw the bank take a dovish tone while making no adjustements to monetary policy, both as was widely-expected. This helped to elicit a quick dip in the single currency, but that sell-off was limited as a bounce began to show shortly after the start of the press conference.

- This raises the question of whether Euro[1] weakness will extend. While many were expecting a dovish tilt at this morning’s rate decision, the fact that weakness could not show more momentum may be a signal that EUR/USD[2] is being driven by USD-trends; while a pair like EUR/JPY[3] might be a bit more attractive for a fade of this morning’s quick-dip of weakness.

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ECB Goes Dovish – EUR/USD Puts in a Bounce

This morning’s ECB rate decision saw no move on rates as was widely expected. We did see ECB President Mario Draghi take a dovish tone, again, as was widely expected[8]. And in response we saw an initial move of weakness in the single currency; but that momentum could not hold and we’re already seeing bounces starting to show. The key signal of

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