EUR/USD is accelerating its losses. The low so far has been 1.1296 but the pair is still battling the round number of 1.13. Update: the pair is already at 1.1267.
After the pair already lost the November 2003 level of 1.1373, there isn’t much between here and 1.10.
Update: EUR/USD falls below 1.12 – QEffect continues
The latest trigger has been the lower than expected manufacturing PMI from Germany, but the much bigger driver is the ECB QE.
In the meantime, we had the all-European flash PMIs: manufacturing PMI came out at 51 points and services PMI at 52.3 points, within expectations.
The move is also accompanied by a stronger dollar against some other currencies. However, the euro is falling more than others, with EUR/GBP getting closer to the round 0.75 level.
The program that could see the printing of over 1 trillion euros is set to start in March and the mere announcement is already sending euro/dollar to around 400 pips below yesterday’s highs.
The pair is basically trading at levels last seen in September 2003 – over 11 years ago.
Yesterday, the ECB beat the expectations that it created and announced a very ambitious bond buying program: 60 billion euros per month and with an intended time limit of September 2016. Basically the program could continue for longer.
More: EUR/USD En-Route To 0.96 in 2015 after ECB Delivers – TD
Here is the chart:
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