The euro has recovered some of its losses against the dollar this morning after a ‘dovish’ European Central Bank meeting yesterday and strong US inflation data weighed on the single currency.
The ECB unanimously voted to leave interest rates as they are, at 0.0%, and decided to maintain the pace of its bond-buying programme. This is in an attempt to prevent financial conditions from tightening.
President of the ECB, Christine Lagarde, indicated that there will be discussions over ending the PEPP in “due course”, but that it is “too early now”.