{"id":77810,"date":"2015-09-04T01:09:24","date_gmt":"2015-09-04T05:09:24","guid":{"rendered":"http:\/\/countingpips.com\/?p=77810"},"modified":"2015-09-04T08:01:45","modified_gmt":"2015-09-04T12:01:45","slug":"euro-drops-as-draghi-signals-ecb-prepared-for-more-qe","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/09\/euro-drops-as-draghi-signals-ecb-prepared-for-more-qe\/","title":{"rendered":"Euro drops as Draghi signals ECB prepared for more QE"},"content":{"rendered":"
September 4, 2015<\/div>
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Article by ForexTime<\/a><\/p>\n

The European Central Bank held a policy meeting on Thursday. As expected, rates were left unchanged. But what the markets focused on was on the ECB Chief\u2019s press conference. Mr Draghi delivered a clear signal that the Bank was prepared to bolster its asset-purchasing programme, should the recent market turmoil threaten the Eurozone\u2019s economic recovery. His comments reminded investors of his \u201cwhatever it takes\u201d remarks.<\/p>\n

The ECB has already pledged to purchase \u20ac1.1tn of mostly government bonds, buoyed equities and bonds across the region.<\/p>\n

The euro plunged by 1 per cent, aiding the region\u2019s exporters and buying the ECB more space as it tries to direct inflation on a path towards its target of just under 2 per cent.<\/p>\n

The ECB president acknowledged that no one on the governing council had called for a souped-up QE package during the talks at the central bank\u2019s headquarters in Germany\u2019s financial capital. \u201cWe\u2019re not there yet,\u201d Draghi said.<\/p>\n

After presenting a set of downgrades to the ECB\u2019s quarterly projections for inflation and growth, Mr Draghi warned that risks threatening both had increased since the forecasts were devised in the middle of last month.<\/p>

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\u201cThe cut-off date to the projections was August 12th. So the events that took place since then are a downside risk to the projections themselves,\u201d he said referring to the global market sell-off that followed the devaluation of the renminbi.<\/p>\n

As he spoke the euro dropped by nearly 1 per cent against the dollar to \u20ac1.11, as his dovish comments buoyed hopes of further central bank stimulus. The Eurofirst 300 stocks index strengthened further to 2.2 per cent and 10-year benchmark Eurozone government bond yields nearly all declined by several basis points.<\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime The European Central Bank held a policy meeting on Thursday. As expected, rates were left unchanged. But what the markets focused on was on the ECB Chief\u2019s press conference. Mr Draghi delivered a clear signal that the Bank was prepared to bolster its asset-purchasing programme, should the recent market turmoil threaten the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-77810","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/77810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=77810"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/77810\/revisions"}],"predecessor-version":[{"id":77828,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/77810\/revisions\/77828"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=77810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=77810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=77810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}