ECB keeps QE unchanged

22 October,, Amsterdam  Shortly after the ECB’s announcement to maintain the expected interest rate at 0.05%, the ECB press conference kicked off. It has been reported that the bank left the key parameters of their QE program unchanged. Yet, the ECB did indicate that it will re-examines its policy at the next meeting in December.

The ECB President, Mario Draghi commented further at the press conference in Malta that: “The asset-purchase plans are proceeding smoothly and continue to have a favourable impact.” Continuing further, Draghi told that the ECB’s QE program is set to proceed until 2016 or even beyond if necessary.

ECB policy re-examination in December!

On a different note, he stated that downside risks have surfaced for growth and the inflation outlook for the Euro region. Considering, the drop in commodity prices and concerns about emerging markets, which remain to have a negative pressure on inflation.

Hence, the ECB is planning to re-examine its current policy for the next meeting in December, while the ECB keeps QE unchanged.

EURUSD drops

Right after the prompted comments of Mario Draghi, and along with the less than expected U.S. jobless claims, the USD extended its gains against the other major currency pairs.

The USD pushed sharply higher against the EUR. Marking a EURUSD downfall that even exceeds the previous three-week lows around 1.1188.

Read also: Time for swing EURUSD sell?

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