The ECB’s decisions made the eurocurrency plummet. Overview for 26.10.2017

The main currency pair is falling during the Thursday trading session after the European Central Bank announced the results of its October meeting.

The EUR/USD pair is being sold after the European regulator published the results of its meeting. The current quote for the instrument is 1.1750.

The main aspects of the regulator’s monetary policy remained the same. The ECB held its benchmark refinancing and deposit rates at 0% and -0.4% respectively. However, the most interesting part was in the comments. The regulator and decided to reduce its QE program from €60B to a monthly pace of €30B from January with the option of extending it in September 2018.

This is exactly what the Euro is responding to on Thursday by retreating against the USD. This is what the ECB earlier said it was ready to do. Nevertheless, the Euro investors weren’t prepared for this, although the regulator warned them in advance.

We must admit that the health of the European economy, mostly thanks to Draghi’s confidence that the long and global QE program is necessary, allows to slowly reduce the dependence of such support. It will be very essential to monitor the inflation and the demand, but the ECB seems to be ready for this.

RoboForex Analytical Department