Back
22 Jan 2015
EUR/USD hits fresh 11-year lows after ECB launches QE
FXStreet (Córdoba) - The euro continued to weaken in the aftermath of the European Central Bank launching an ‘expanded asset purchase programme’ worth EUR 60 billion per month. The programme will include sovereign bond purchases, a policy known as quantitative easing, and it is aimed to fight stagnation and low inflation in the Eurozone.
EUR/USD initial reaction was muted, but then pressured lower and hit a fresh low of 1.1452, last seen November 2003. At time of writing, the pair is trading at 1.1480, recording a 1.1% loss on the day.
Meanwhile, European stocks advanced while sovereign yields plummeted across the board after the announcement.
Divergent ECB/Fed monetary policies are expected to continue pressuring on EUR/USD in the long-term, as US moves toward normalization of its policy while ECB is just starting, with the expanded asset purchase programme expected to last until September 2016.
EUR/USD initial reaction was muted, but then pressured lower and hit a fresh low of 1.1452, last seen November 2003. At time of writing, the pair is trading at 1.1480, recording a 1.1% loss on the day.
Meanwhile, European stocks advanced while sovereign yields plummeted across the board after the announcement.
Divergent ECB/Fed monetary policies are expected to continue pressuring on EUR/USD in the long-term, as US moves toward normalization of its policy while ECB is just starting, with the expanded asset purchase programme expected to last until September 2016.