Currencies: the euro down sharply against the dollar after the announcement of the ECB
London (awp / afp) – The euro off again sharply lower against the dollar on Thursday, after confirmation by the Bank European Central Bank (ECB) for a massive program of asset purchases to boost economic recovery in the eurozone.
Around 2:50 p.m. GMT (3:50 p.m. CET), the single European currency was worth $ 1.1456, its most level lowest since November 2003, against $ 1.1607 Wednesday around 2200 GMT. A few minutes before the announcement of the ECB, the euro was still worth $ 1.1620.
The European currency also fell against the yen at ¥ 134.57, its lowest level since mid-October, against ¥ 136.85 on Wednesday.
The dollar also fell against the Japanese currency at ¥ 117.39 against ¥ 117.90 the day before.
President ECB “Mario Draghi was forced to launch a program of quantitative easing more robust than expected in order to get the economies of the euro area from their torpor,” said Dennis de Jong, director of online broker UFX .com.
Mr. Draghi announced that the European Central Bank will buy up to 60 billion EUR of public and private debt per month between March 2015 and September 2016.
The latest press information before the official announcement of this program awaited had reported $ 50 billion until the end of 2016.
The euro has suffered in recent weeks the prospect of such an announcement, even falling in mid -January under 1.1500 dollar for the first time since November 2003, since these asset purchases, which will in particular through buybacks of sovereign debt in the euro area will be similar to liquidity injections into the financial system monetary union, but also have the collateral effect of diluting the value of the single currency.
In addition, the fact that “Mr. Draghi had to get out a miracle cure helps to gauge the extent of the bad economic situation in which is the euro area, “commented Ben Brettell, an analyst at Hargreaves Lansdown.
Alex Edwards analyst UKForex broker,” once this announcement will be packed, the market could soon see it as a positive thing, “because this program is intended to” fix the economy of the euro area and get her out of deflation. “
However, the euro should remain under pressure in the medium term because the gap is widening between the monetary policy of the ECB and the US Federal Reserve (Fed) that it ended its asset purchases in October and could start to raise rates this year.
“We really need the Fed to take its turn train monetary surprises that has gained momentum from the Swiss shock last week,” noted Jameel Ahmad analyst FXTM.
The Swiss National Bank (SNB) had surprised the markets by mid-January announcing the elimination of the Swiss franc rate floor against the euro.
Monday, Denmark had announced a lowering rates, the main policy rate (loans to banks) down 0.05% and the deposit rate to -0.20%, to discourage the inflow suffered the crown since Euro loses value.
On Wednesday, the Central Bank of Canada had in turn surprised the markets by lowering its key rate a quarter point to 0.75% in an attempt to drive growth through consumption and exports as the country was hit hard by the falling oil prices.
Around 2:50 p.m. GMT, the British pound rose sharply against the single European currency, 75.76 pence, its strongest level since late February 2008 and was stable against the dollar, to $ 1.5137 per pound.
The franc rose against the euro, 0, 9892 CHF per euro but fell against the greenback at 0.8620 CHF to the dollar.
The Chinese currency finished at 6.2090 CNY to the dollar, against 6.2123 CNY yesterday .
The ounce of gold finished at 1287 USD in auctions in the morning, against $ 1,293.50 late Wednesday.
Course Thursday Wednesday rates
———————————-
2:50 p.m. GMT 2200 GMT
EUR / USD 1.1456 1.1607
EUR / JPY 134.57 136.85
EUR / CHF 0.9892 0.9976
EUR / GBP 0.7576 0.7665
USD / JPY 117.39 117.90
USD / CHF 0.8620 0.8594
GBP / USD 1.5137 1.5143
afp / en
(AWP / 01.22.2015 4:35 p.m.)
(AWP / 22.01. 2015 17:20) ^ ->
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