No changes for its policy rate and the ECB’s current trillion-euro QE program yesterday at the press conference after the ECB rate decision meeting cam to a conclusion. President Draghi did not give any further clues on the upcoming plans for the bon buying program as March 2017 approaches.
President Draghi dismissed reporters questions by saying that there had not been any talk on how it would be tapered down, but he did say that it would not last forever and that it was unlikely to abrupt.
In the initial volatility following his words the euro was initially garnering suppprt and spiked to 1.1039 against the USD, around 60 pips higher than before the event. However the move higher was not very long lasting for the single currency and started to back off soon after. The euro remains weak even this morning after ECB president Draghi showed traders tapering musn’t be close even it hasn’t been discussed yet.
The USD stood out in overnight asian trading, and despite a weaker start of week, the greenback saw some support coming in over Thursday and Friday. The US Dollar index is currently trading at 98.49 after opening the week 98.06 and making lows of 97.61 last Tuesday. The US Dollar was also helped by stronger than expected data out of the US yesterday.
