Forex – Euro Reverses Gains as ECB Downplays Change to QE Pledge


© Reuters. Euro Reverses Gains as ECB Downplays Change to QE pledge

Investing.com – The euro reversed gains on Thursday after European Central Bank President Mario Draghi downplayed a decision to drop a pledge to expand its quantitative easing program from its rate statement.

was at 1.2392 by 09:13 AM ET (14:13 GMT) after initially rising to a high of 1.2446.

The euro initially rose after the ECB to extend its stimulus program if necessary from its rate statement, in a sign that it is moving closer to ending its massive monetary stimulus program.

Draghi said the pledge to expand its quantitative easing program had been added to the bank’s rate statement in 2016 when the situation was very different.

The decision to drop the easing bias on QE was unanimous, Draghi said.

He also noted that the ECB maintained its pledge to continue its asset purchase program until September 2018 ‘or beyond, if necessary’.

The ECB revised up its growth forecasts for 2018 to 2.4% from 2.3% in December and left its growth forecast for 2019 and 2020 unchanged at 1.9% and 1.7%, respectively.

Draghi cautioned that growth could be threatened by various downside risks, including protectionism.

The central bank revised down its inflation forecasts for 2019 to 1.4% from 1.5% previously. It still expects inflation of 1.4% in 2018 and 1.7% in 2020.

The euro also pared back gains against the yen and the pound, with last at 131.50, down from a high of 131.98 and recently at 0.8930.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Comments

comments