Euro near 2-year low as ECB renews vow to stimulate economy
November 7, 2014 2:20 am
The euro traded close to two-year troughs versus the US dollar following European Central Bank President Mario Draghi reiterated its vow to take necessary measures to stimulate the eurozone economy.
Draghi said the ECB sought to escalate its balance sheet size towards the March 2012 levels, when it reached €3 trillion, higher than its current level. He added the central bank would prepare the groundwork.
“The ECB’s current programmes would not be enough to achieve that balance sheet target. And considering downside risks to prices, the ECB will likely start sovereign bond quantitative easing,” said Shin Kadota, Chief FX Strategist at Barclays.
The currency was at $1.2381, dropping as low as $1.2364 on Thursday, its lowest since August 2012. It last traded at $1.2375.
The material has been provided by InstaForex Company – www.instaforex.com
The euro traded close to two-year troughs versus the US dollar following European Central Bank President Mario Draghi reiterated its vow to take necessary measures to stimulate the eurozone economy.
Draghi said the ECB sought to escalate its balance sheet size towards the March 2012 levels, when it reached €3 trillion, higher than its current level. He added the central bank would prepare the groundwork.
“The ECB’s current programmes would not be enough to achieve that balance sheet target. And considering downside risks to prices, the ECB will likely start sovereign bond quantitative easing,” said Shin Kadota, Chief FX Strategist at Barclays.
The currency was at $1.2381, dropping as low as $1.2364 on Thursday, its lowest since August 2012. It last traded at $1.2375.
The material has been provided by InstaForex Company – www.instaforex.com
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