The European Central Bank Trims Bond Purchases
The European Central Bank Trims Bond Purchases
Euro fell as much as 1% after the European Central Bank unexpectedly extended its quantitative-easing programme to exceed 2.2 trillion euros ($2.4 trillion) by the end of 2017. However, the ECB said, it could trim its monthly pace of bond purchases.
The ECB said in a statement that the current asset purchases of €80 billion ($86 billion) a month were due to end on March 2017, but will now be extended until December 2017 and will be cut to €60 billion a month from April 2017.
On the other hand, the ECB kept the rate on the deposit facility at -0.4%.
The common currency declined to $1.06 and could decline further during the day and touch the support of $1.0530.
Gold fell yesterday as the European Central Bank's decision on quantitative-easing programme supported the Greenback. The Precious metal settled at $1,170 and could settle above such level during the day.
Also on Thursday, the number of Americans who applied for unemployment benefits declined from a five-month high last week, reinforcing the picture of a healthy job market. The U.S. dollar index, which measures the greenback against a basket of six major rivals, jumped to 101.
Oil prices settled above $50 a barrel, positively affected by the European Central Bank's decision.
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The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.
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