The euro dropped today after the monetary policy meeting of the European Central Bank. While ECB President Mario Draghi did not make any changes to the policy, he announced the start of the planned quantitative easing program.
Draghi announced that the ECB will start additional asset purchases (on top of those the central bank is already performing) on Monday (March 9.) As for the end of the program, it will not come until September 2016 or even later if necessary. The ECB set the goal to bring inflation close to the 2 percent level.
The announcement was clearly detrimental to the euro as the currency dropped after the news against other most-traded currencies, including the yen that was extremely weak itself. Now, investors wait for Friday’s nonfarm payrolls which, if forecasts to be believed, should make another hit to the euro.
EUR/USD dropped from 1.1078 to 1.1026 as of 19:23 GMT today, reaching a new multi-year low. EUR/GBP fell from 0.7257 to 0.7235, also trading near the low not seen in several years. EUR/JPY was up from 132.58 to 133.57 before slipping to 132.47.
If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.
Be First to Comment