The euro weakens again against the dollar and returns below the threshold of 1,09, a level it has not seen since last March. Already on Thursday, on the day of the ECB, the single currency had experienced a session characterized by a certain volatility on the euro/dollar exchange rate which, after temporarily going above 1,10, quickly fell to below 1,09 this morning.
“It will be important to monitor the hold on the 1,09 level – Mps Capital Services analysts wrote in a note just this morning – as a possible decisive break could push the exchange rate up to the 1,08 area”. The movement of the euro, which has already been feeling the effects of the strength of the dollar for two weeks, was accentuated yesterday. When Draghi stressed that QE cannot last indefinitely, the reaction was clear: the euro appreciated and interest rates rose. However, when the president of the ECB added that the institute does not intend to curb the purchase plan in a brutal way, operators breathed a sigh of relief, imagining that in any case there will be an extension after the March 2017 deadline. point the reaction was diametrically opposite: depreciation of the euro and falling rates. In extreme synthesis, they explain from Mps Capital service, it is as if for a few minutes the hypothesis of what the reaction could be, in the absence of Qe, had been tested.
Who-(RADIOCOR) 21-10-16 10:53:58 (0238)NEWS 3
