Release Explanation: Measurement of the value of cash, currency and cash assets held by the public. Monetary policy controls the supply and cost of money and credit. “A central bank will increase the supply of money and decrease the cost of borrowing to stimulate an economy and vice versa to slow down an economy. While measuring the cost of borrowing is fairly easy (yield on Treasury Bonds), measuring the money supply can be a more daunting task,” TheLFB-Forex.com Trade Team said.

TheLFB-Forex.com Trade Desk Thoughts: The Euro zone M3 number hit the wires at 5.1%, much lower than what analysts had previously estimated. The number for the month of February was revised to 5.8%, slightly lower than the initial release. 

”The Euro area M3 was expanding at a very strong pace in the last few quarters, but it seems now the pace of growth is starting to slow. The number of Private Loans in the Euro-zone tumbled down to 3.2% from one year earlier, also under the forecasted number, reflecting the tougher credit conditions,” TheLFB-Forex.com Trade Team noted

Forex Technical Reaction: The euro traded side-ways during the European session, but advanced 60 pips during the Asian trading hours. Against the pound, the euro lost 20 pips today.