EUR/USD Bounces From 2-Year Low As Draghi Delivers Less Dovish Message
XTB | Jul 25, 2019 15:48
There’s been a see-saw market reaction to the latest policy announcement from the ECB with the initial moves reversing as President Draghi conducted his press conference.
There was some expectation that the bank would cut the overnight deposit rate, but the Governing Council have seemingly decided to bide their time with all interest rates kept unchanged. The decision was accompanied by a short statement that hinted at the resumption of Quantitative Easing and this caused an initial drop in bond yields and the Euro while stocks rallied. In fact the EUR/USD fell to its lowest level in 2 years and was on the brink of trading below the $1.11 handle.
However, once President Draghi began his press conference these moves reversed. It’s not so much that the Italian said anything particularly hawkish but he did seem a little cautious and the overall tone suggests the markets may have gotten a bit ahead of themselves in the initial reaction.
EUR/USD has bounced by around 70 pips since Draghi began speaking with the market reacting positively after earlier hitting its lowest level in over 2 years at 1.1100. Source: xStation
EURUSD has bounced by around 70 pips since Draghi began speaking with the market reacting positively after earlier hitting its lowest level in over 2 years at 1.1100. Source: xStation
EURUSD has bounced by around 70 pips since Draghi began speaking with the market reacting positively after earlier hitting its lowest level in over 2 years at 1.1100. Source: xStation
EURUSD has bounced by around 70 pips since Draghi began speaking with the market reacting positively after earlier hitting its lowest level in over 2 years at 1.1100. Source: xStation
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