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Draghi Pushing for Full QE – Report

According to a report, the president of the European Central Bank is pushing for a full blown and direct Quantitative Easing program, bending the arms of the Germans. This long awaited move could  

In recent days, the ECB accelerated its SMP bond buying program especially with Italian bonds. This was a response to rising yields, as Unicredit had troubles.

But this may be only the appetizer for the real thing. According to this report by John Ward, Mario Draghi is now set for the big thing: buying bonds big time, without sterilizing them – American style QE.

Such a move would certainly stabilize the euro-zone, but may not bode well for the euro itself – creating money out of thin air devalues the currency.

EUR/USD is already falling sharply, and bounced at the 1.2720 support line. For more on the pair, see the euro/dollar forecast.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.