We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
More View more
Breaking news

ECB leaves all rates unchanged in line with expectations

Real Time News
  • $EUR | The @ecb raises its forecasts for 2019 #GDP to 1.2% from 1.1% prior, but lowers 2020 GDP estimate to 1.1% from 1.2% prior. #CPI unchanged at 1.2% for 2019, raised by 0.1% to 1.1% for 2020 and lowered by 0.1% for 2021 to 1.4%
  • ECB's Lagarde: -Risks still tilted to the downside but risks are somewhat less pronounced -Some indicators of a mild increase in core inflation, headline inflation to pick up slightly in coming months $EUR
  • There were no surprises from the European Central Bank Thursday as it kept all its monetary policy settings unchanged, as expected. Get your market updates from @MartinSEssex here:https://t.co/J90GMvG1ot https://t.co/X1LKGMzAjh
  • ECB's Lagarde: -Highly accomodative policy still needed -Inflation outlook subdued -We stand ready to adjust all instruments as needed -Some initial signs of stabilization in growth slowdown $EUR
  • RT @LiveSquawk: ECB’s Lagarde: Some Initial Signs Of Stabilisation In Growth Slowdown
  • $USD coming under pressure as cracks begin to emerge in the US labor market. The 252K print for initial jobless claims is the highest reading since Sep 2017 #Jobs #Fed https://t.co/sfFHEomm0x
  • 🇺🇸 USD Initial Jobless Claims (DEC 7), Actual: 252k Expected: 212k Previous: 203k https://www.dailyfx.com/economic-calendar#2019-12-12
  • 🇺🇸 USD Continuing Claims (NOV 30), Actual: 1667k Expected: 1678k Previous: 1698k https://www.dailyfx.com/economic-calendar#2019-12-12
  • 🇺🇸 USD Initial Jobless Claims (DEC 7), Actual: 252K Expected: 212k Previous: 203k https://www.dailyfx.com/economic-calendar#2019-12-12
  • Traders should know how to confidently approach, enter and exit both Bull or Bear markets. Need some insight into it? Get it from @nickcawley1 here: https://t.co/GhvvFrB3gz https://t.co/eZCZpRmTck
Euro Plunges as European Central Bank Cuts Rates, Announces QE

Euro Plunges as European Central Bank Cuts Rates, Announces QE

2014-09-04 13:00:00
David Rodriguez, Head of Business Development

- Euro trades to $1.30 versus US Dollar for first time since July, 2013

- European Central Bank cut all three of its benchmark rates by 10 basis points

- ECB President Mario Draghi announces the start of Quantitative Easing program

The Euro plunged to fresh yearly lows and tested the critical $1.30 mark versus the US Dollar as the European Central Bank cut interest rates and announced Quantitative Easing policies.

Few analysts and traders expected the ECB would move on interest rates and even less expected that ECB President Mario Draghi would announce the start of a Quantitative Easing program. Thus the Euro fell sharply lower across the board, but questions remain how much lower the Euro may go.

It is absolutely worth noting that the past two ECB rate cuts resulted in a similar EUR plunge only for the single currency to set a noteworthy short-term low immediately following the decision.

Euro Plunges to $1.30 as ECB cuts Rates, Tremendous Sense of Déjà vu

Euro Plunges as European Central Bank Cuts Rates, Announces QE

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.

And indeed it seems as though the Euro is at real risk of setting a short-term exhaustion low at or near these levels. We recently highlighted critical risks that the single currency could soon stop and reverse higher versus the US Dollar.

The immediate shock value and implications of the announcements are something to be respected. Yet we see that positioning remains extremely stretched; few speculators remain left to sell the Euro at these levels.

It’s likewise worth noting that ECB President Draghi said today that interest rates are at their lower technical bound; there’s essentially no scope for further interest rate cuts.

We find it difficult to advocate getting long Euro when the trend is so overwhelmingly bearish. But timing is everything in trading, and we think this is not the right time to chase Euro declines. In fact we see substantial risk that the EURUSD may set a fresh exhaustion low and turn higher.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com David specializes in automated trading strategies. Find out more about our automated sentiment-based strategies on DailyFX PLUS.

Contact and follow David via Twitter: https://twitter.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.