European Central Bank

EUR/USD underpinned by ECB’s policy stance that sees it take “conditional” step toward normalisation.

The Euro to Pound Sterling exchange rate rose a third of a percent to 0.8423 in the wake of the decision, putting the Pound to Euro rate at 1.1872.

ECB Chief Economist Philip Lane has pushed back against market expectations for a number of interest rate rises in 2022, saying the ECB could accommodate a temporary rise in inflation.

Euro bulls have misread the European Central Bank's intentions on policy normalisation warns a major European bank which sees the Deposit Rate remaining below 0% even once hikes have been delivered.

Nordea sees 25bp hike due in December, Berenberg says March lift-off as more likely.  Timing matters greatly for EUR exchange rates.

The Euro has stabilised after European Central Bank President Christine Lagarde attempted to cool building market expectations for higher Eurozone interest rates in an appearance before EU lawmakers.

EUR/USD eyes 1.14 on ECB inflation warning, drives rally in EUR/GBP & squashes GBP/EUR.

"The main risk to our ongoing EUR bearishness has to be the possibility that the ECB changes tack in a hawkish direction" - Credit Suisse.

"Our strategists would expect EUR/USD to rise materially above 1.20 by next year" - Deutsche Bank.

EUR/USD steadies after retreat back below 1.14, but ECB-Fed divergence set to grow heavier still.

Pound Sterling has already breached Credit Suisse's forecast target against the Euro, leading the Swiss bank to raise a new target and affirm their bullish stance on the UK currency against its continental rival in 2022.

EUR/USD through 1.13 after ECB saysPEPP to end in March.

The single currency has rallied against the Pound and Dollar, helped by supportive comments from council members of the European Central Bank.

Euro exchange rates were softer in midweek trade and faced a challenging outlook after the ECB's Lagarde sent markets a clear message that they were wrong to expect interest rate rises as soon as 2022.

The Euro rate got little help from October’s ECB monetary policy decisions and struggled to compete with a Dollar that has benefited from the prospect of a further shift in stance at an almost-hawkish Fed.

"The move smacks of some of the ECB hawks trying to open up the debate on monetary normalisation"

EUR/USD attempted to draw a line under a hat-trick of losses but was struggling for momentum on Thursday after the ECB reduced slightly the pace of bond purchases under one of its quantitative easing programmes and hinted that a further reduction could come in December.

Those betting on a stronger Euro against the Pound were left disappointed after the European Central Bank (ECB) met expectations and said it would lower the pace of its pandemic era quantitative easing programme.

The Euro-Dollar rate saw only a tepid rebound on Thursday as the Euro lagged other comparable currencies in capitalising on widespread declines by Dollar following new ‘dovish’ guidance from the European Central Bank (ECB), which confirmed that an age of near-zero interest rates continues to loom over the path ahead for the Eurozone.

Pound Sterling's recovery against the Euro gathered momentum in the wake of the European Central Bank's July policy update.