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ECB president Mario Draghi talks in a conference in Frankfurt and monetary policy tools is the agenda. Draghi says that the governing council confirmed the  validity of asset purchases as a tool and says they are “nothing new”. The move was meant to meet the mandate. Indeed, Draghi does not announce anything we didn’t know and basically just taps himself on the back. Nevertheless, the euro just falls lower.

EUR/USD is  reacting with a dip to new lows below 1.0660 and the new low is 1.0642. There is no support until 1.05.. The euro is also at new long term lows against the Japanese yen, British pound  and the Canadian dollar. Update:  the downwards move continues. The new low is 1.0637.

This is the third day of the European Central Bank’s Quantitative Easing program. Draghi not only justifies the program but also says  the expectations already began showing some results.

It was “largely anticipated”.  Stimulus has been effective and transmission has improved. He also says that  there is good reason to believe that as our balance sheet expands, it will support rebound in inflation expectations.

Regarding Greece: the  bond-buy plan may be shielding countries other than Greece from contagion.

He is aware that the tools may entail some risks, but that these are contained. He says that the slowdown in growth has been reversed, but not only because of QE. Other reasons include oil prices and also the foreign exchange rate.

He also repeated his stance that the upbeat forecasts are dependent on the implementations of all measures: this means that QE is set to continue in full force.

EUR/USD already settled below 1.07 during the Asian session, and  support awaits only at 1.05.

In the fresh podcast, we talk about the US economy,  the Australian and Canadian rate decisions, a potential easing in Japan, the widening gap within oil prices and an update on forex brokers after the SNBomb

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