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EUR/USD soars on no extra QE from ECB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - EUR/USD extended gains and broke above the 1.0800 level and quickly approached 1.0900, accumulating more than 350 pips from lows after Draghi announced a few tweaks to its QE program but kept the €60 billion per month unchanged.

    In the pursuit of price stability, Draghi announced that besides cutting the deposit rate to -0.3%, the ECB decided to prolong the bond buying program until March 2017 - instead of September 2016. The bank also announced it will reinvest principal payments and will include regional and local debt.

    The euro soared and European stocks plummeted as Draghi disappointed those expecting the ECB will increase the amount of bond purchases.

    EUR/USD climbed to a high of 1.0891, its highest in a month before easing slightly. At time of writing, the pair was trading at 1.0847, up 2.21% on the day.

    Draghi continues with the Q&A round that could spark some extra volatility.
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