Saturday, September 6, 2014

EUR/USD Drops Sharply to 1.2930 after ECB’s Stimulus Jolt

The euro nursed hefty losses early on Friday, having suffered its biggest one-day fall in nearly three years against the greenback after the European Central Bank delivered a fresh round of stimulus and promised even more if needed.

The common currency slumped over 1 percent against most of its major peers and notched a 1.6 percent drop on the dollar – the biggest one-day decline since November 2011.  The ECB cut interest rates to fresh record lows and announced plans to buy asset-backed securities (ABS) and covered bonds in October.

“While President Draghi declined to provide a size estimate for the asset purchase program, he indicated that…the ECB aimed to increase its balance sheet back towards levels seen in 2012, which would imply a roughly 1 trillion euros, or a 50 percent increase, from current levels,” analysts at BNP Paribas wrote in a note to clients.

CNBC

0 коментарі:

Post a Comment