No Prospect for QE to End Soon – EURUSD Nose-Dives To Four-month Lows
Oct, 20th 14:57
The euro collapsed against its American counterpart in a volatile trading day on Thursday. The pair hit the intra-day high at $1.10386 before falling to $1.09198 – the lowest since June 24. The European Central Bank has kept its interest rates unchanged and also made no adjustment on its quantitative-easing program in its last policy meeting as initially expected by markets.
However, in the press conference which came after the rate decision, the ECB President Mario Draghi said that the central bank had not discussed about an extension of its bond-buying program beyond March 2017, and that the ECB would not stop its QE program without tapering its first.
Given Draghi’s comments that the risks are to the downside, and his concerns about subdued foreign demand, ECB’s current stimulus measures may not end before its initial schedule.
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