The European Central Bank released its meeting minutes from the September meeting and they repeat their dovish tone. They stress that the policy should remain highly accommodative no matter what happens.
Back then, ECB president put an emphasis on the exchange rate, expressing his worries about the rise of the euro. While Draghi failed to convince market in the immediate aftermath (the euro advanced), it did fall afterward and the pressure continues.
In addition to the ECB minutes, the Governor of the Austrian Central Bank, Ewald Nowotny, added his dovish words. He said that the ECB “must take the foot off the QE gas pedal gradually, not hit the brakes”. This implies a slow process and a higher total of bond buying.
EUR/USD slipped to a low of 1.1734 in reaction. It tried to tackle the highs of 1.1780 and retreated downward. Support awaits at 1.1690, but the pair is not very volatile.
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