EUR/USD: big time supply after Draghi - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that ECB's President, Mario Draghi, surprised the markets with his announcement this Thursday, which lead to one of the largest EUR/USD intraday declines in almost two months.

    Key Quotes:

    "The Central Bank statement signaled that the ECB may add additional stimulus in December, either by expanding its assets purchases, or lowering the deposit rate further below zero, something that officials even discussed this month."

    "The pair plunged also on the back of positive US data, which fueled dollar's demand. Weekly unemployment claims, in the North American country fell to 259 against expectations of 266K, sending the four-week average to its lowest since 1973. Additionally, US Existing Home sales rebounded strongly in September, increasing by 4.7% to a seasonally adjusted annual rate of 5.55M. European stocks soared after the news, and the US indexes followed, closing at their highest since mid August."
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