On Thursday ECB President Draghi announced his “Big Bazooka” the ECB quantitative easing programme (QE). The central bank announced a slightly larger bond-buying programme of €60 billion per month into 2016. This is a significant amount of “money printing” which is an attempt to stimulate growth within the Eurozone. The announcement had been widely priced in following tactical leaks to the press prior to the event.
Since March 2014 the Euro against the US dollar (EURUSD) has trended lower from 1.40 to trading below 1.12. This is the lowest level since the summer of 2003, when the pair traded to a low of 1.0762.
The currency has weakened dramatically since the start of the year (2015) trading down from above 1.20. Today’s trading has been volatile, with the currency pair taking substantial legs lower.
EURUSD currently trading: 1.1119
Is parity for the pair the next target?