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22 Jan 2015
EUR/USD falls as Draghi announces ‘expanded asset purchase program’
FXStreet (Córdoba) - EUR/USD fell to fresh daily lows after Draghi announced the ECB will launch an "expanded asset purchase programme" which will include Eurozone countries' government bonds, a policy known as quantitative easing (QE.
ECB decided to launch an expanded asset purchase programme, which includes existing purchase programmes for asset-backed securities & covered bonds and will amount 60 billion per month. This programme will start in March 2015 and it will last until "sustained adjustment in path of inflation."
The purchases will be based on the capital key, which means buying will be proportional to each Eurozone member country’s debt.
EUR/USD fell to a low of 1.1511 but quickly recovered half of the slide. At time of writing, the pair is trading at 1.1550 from 1.1610 area just before Draghi started the conference. The reaction has been quite shy despite the announcement met expectations in terms of QE size.
ECB decided to launch an expanded asset purchase programme, which includes existing purchase programmes for asset-backed securities & covered bonds and will amount 60 billion per month. This programme will start in March 2015 and it will last until "sustained adjustment in path of inflation."
The purchases will be based on the capital key, which means buying will be proportional to each Eurozone member country’s debt.
EUR/USD fell to a low of 1.1511 but quickly recovered half of the slide. At time of writing, the pair is trading at 1.1550 from 1.1610 area just before Draghi started the conference. The reaction has been quite shy despite the announcement met expectations in terms of QE size.