Still expecting two rate cuts from ECB in first half of 2020 - TD Securities

Commenting on the European Central Bank's monetary policy announcements and President Lagarde's first press conference, "the ECB kept is policy rate and forward guidance unchanged, so all eyes were on Christine Lagarde's first press conference as ECB President," note TD Securities analysts.

Key quotes

"She seemed to have something for both the hawks and the doves on the Governing Council, with more upbeat qualitative language, but softer quantitative forecasts. We still look for two rate cuts from the ECB in the first half of 2020, when the macro data turns softer again."

"Markets will need time to adjust to Lagarde-speak. This much was also made clear by the new President herself. As a result, EURUSD's malaise should continue, where its near-term direction will be driven by the outcome of US/China trade and UK elections. Positive outcomes there will open up a break through the 200dma, but the sustainability of a breakout is more likely to be reserved for late 2020."