As expected the European Central Bank this morning kept it
key lending rates unchanged but did announce a massive stimulus program to try
and get the European economy moving. The Central Bank plans to buy back €60B of
government securities each month until September of 2016, this was more that the market
expected on a monthly basis but is
ending a little quicker than the market predicted. I think this will overall
will be Euro positive and I would expect Euro to jump in the next few days.
The initial reaction has pushed EURO.USD to 1.1520 and EURO.CAD to 1.4250, there has been no material reaction to USD.CAD at the moment. EURO.USD quickly recovered and is trading back at 1.1600, EURO.CAD is now above 1.4300. It is a very volatile market
Mike
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