ECB Holds Rates, Euro See-Saws

Resisting crisis pressure, the European Central Bank did as expected and held rates steady at 1.0% overnight. Though no interest rate activity was expected, markets had been hoping for some kind of sign that the ECB was preparing some sort of stimulus. But ECB president Mario Draghi went the opposite route, noting during the press conference that it was not the ECB's place to step in where other euro zone institutions had failed to do so. The common currency, which had previously been supported by broader positive market sentiment and short-covering, responded unfavourably to Draghi's comments. The EURUSD fell back below 1.2500, the EURJPY sold down into the 98.50 region, and the EURGBP pushed lower towards 0.8050.