The Euro jumped over 300 points in afternoon trade after the European Central Bank agreed to increase their stimulus program which sent shockwaves through the currency markets.
Although initially falling after the ECB cut their benchmark rate, the Euro sharply rebounded after a speech from ECB president Mario Dragi.
Most analysts had been expecting the ECB to announce further rate cuts down the line in an effort to boost the economy, but in an about turn Mr Dragi announced that it was doubtful that further cuts would be needed.
“From today’s perspective, we don’t anticipate it will be necessary to reduce rates further,” Mr Draghi said.
Although rates may remain on hold, he also noted that the current rate will be sustained far into the future as the economy recovers and the added stimulus program kicks in.
“Rates will stay low, very low, for a long period of time and well past the horizon of our purchases,” Draghi said,
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|