Euro Drops to Fresh Lows as Draghi Fails To Impress
The EUR/USD dropped to fresh weekly lows despite the fact that the ECB lowered its benchmark rate and announced a series of non-standard measures to help ease credit conditions in the region. The pair hit a low of 1.3311 in morning North American trade after ECB President Mario Draghi refused to entertain the idea of using the central bank as a lender of last resort stating that this was against its mandate.
The ECB lowered its benchmark rate by 25bp to 1.00% although the decision was not unanimous for only the second time in history. However, Mr. Draghi tried to reassure the market that the disagreement was only about the timing not the direction of the policy. The ECB also introduced a wide array of non-convectional programs that greatly expanded the the type of collateral that the central bank was willing to accept in an attempt to stimulate lending in the Eurozone.
However, by refusing to act as a backstop to the EZ sovereign debt market, the ECB may have created the worst of both worlds scenario by essentially lowering the credit quality of euro without providing any interest rate relief for the member nations. Little wonder then that euro was weaker not only against the dollar but against most of the majors as a result of today’s actions. The pair is geared to test its recent swing lows at 1.3260, but shorts may be hesitant to press their cause ahead of the EU summit tonight. [B][COLOR="#FF0000"]Yet if EZ policymaker fail to produce a meaningful plan the pair could quickly tumble to 1.3000 on market disappointment. [/COLOR][/B]
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Ai đánh Euro/USD nhớ theo dơi tin tức tối nay, sẽ có biến động....