Euro Plunges Following Draghi’s Comments

Euro is heading much lower today, plunging following the latest comments by ECB President Mario Draghi. His insistence that the ECB will do whatever it takes to stimulate the eurozone economy is driving the 18-nation currency lower today.

Euro continues to trade near session lows today, losing ground across the board following the latest remarks from Mario Draghi, the President of the European Central Bank. Draghi indicated that asset purchases are ready to ramp up in an effort to help stimulate the eurozone economy. In remarks made early on Friday, Draghi insisted that the ECB is prepared to do whatever it takes to boost inflation in the 18-nation currency region.

The remarks had an immediate impact on the euro, sending it lower against its major counterparts. Quantitative easing is designed to weaken a currency, and the rise of more asset purchases by the ECB will mean more weakness for the euro. In fact, many expect that the euro will experience aggressive weakness. Draghi’s comments came after the latest PMI data was released about the eurozone, as well as numbers indicating that annual inflation in the 18-nation region was at 0.4 per cent.

At 11:43 GMT EUR/USD is down to 1.2422 from the open at 1.2545. EUR/GBP is down to 0.7931 form the open at 0.7992. EUR/JPY is down to 146.5540 from the open at 148.0410.

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