FXStreet (Delhi) – Research Team at ANZ, note that the EUR dropped precipitously as the ECB moved into “work and assess” mode for further stimulus and hinted at additional stimulus in December.
Key Quotes
“The overnight focus was squarely on the ECB meeting, and as usual ECB President Draghi delivered – exceeding dovish market expectations. Indeed, Draghi laid the groundwork for additional policy easing, stating that the Governing Council would “re-examine” the “degree of monetary accommodation” at the December policy meeting.”
“The prospect of further easing drove EUR/USD sharply lower, with the policy divergence between the ECB and Fed likely to widen further, irrespective of whether the Fed raises rates this year or not. US bond yields are down slightly, while core and peripheral euro area sovereign bonds rallied sharply in the wake of Draghi’s comments.”
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