Home / Forex & Currency Exchange News / Draghi disappointment propels Euro higher

Draghi disappointment propels Euro higher

Article by ForexTime

The Euro was flung onto a chaotic rollercoaster ride on Thursday following the European Central Bank’s decision to keeping its monetary policy stance unchanged despite the worrying state of the European economy. Official interest rates were left unchanged while monthly asset purchases of $80 billion were confirmed to run until the end of March 2017 which left investors empty handed. With uncertainty still a recurrent theme in the markets, most central banks have adopted a stance on inaction and such was displayed in today’s ECB meeting. Although Draghi pledged that the ECB would act by using all instruments available within its mandate to bolster Eurozone growth, this may have fallen on deaf ears.

It is becoming increasingly clear that the Eurozone is entangled in a losing battle with faltering growth while static inflation levels continue to question the ECB’s credibility. Although Draghi also suggested that the economic recovery in Europe is likely to be dampened by the UK’s Brexit vote, this was still not enough to prompt the central bank to act. While Draghi’s dovish rhetoric may have opened doors for an extension to bond buying program beyond March 2017, the visible disappointment could propel the Euro higher. Sentiment remains bearish towards the Eurozone and today’s inaction may spark further questions over the central bank’s ability to jumpstart Eurozone growth.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

Check Also

US Dollar Index Speculators trimmed bearish positions this week

US Dollar Index Speculators trimmed bearish positions this week

By CountingPips.com – Receive our weekly COT Reports by Email US Dollar Index Non-Commercial Speculator Positions: Large currency speculators reduced their bearish net positions in the US Dollar Index futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures […]

Leave a Reply

Your email address will not be published. Required fields are marked *