Draghi Doesn’t Deliver – EUR/USD shoots higher

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Big upset: no new QE, extension of the program to March 2017 and and re-investing of proceeds. The ECB will also buy municipal bonds. Expectations stood on a rise of 10 to 20 billion. Re-investing proceeds does not get close to that.

EUR/USD shoots to a new high of 1.0810. Update: 1.0890.

Inflation expectations were left unchanged for 2016 at 1%.

Earlier, Draghi under-delivered by cutting the deposit rate by only 10 basis points to -0.30%. This sent EUR/USD rallying all the way to 1.0740 before the pair fell back to a higher range.

EURUSD shoots higher Draghi disappointment December 3 2015

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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 the 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.

2 Comments

  1. No surprise here, Draghi aims for 1.10 dollar per euro, in order not to upset US economy which still has to lead. Any recession in the US would crash the Euro zone’s economies.

    • Thanks Johan, that’s an interesting observation. I guess there is some level of coordination between the central banks