Strategy Video: This ECB Decision is Important to EURUSD's Drive to Parity
• The ECB announced its QE program at its January meeting, but details were saved for this meeting
• A fresh 11-year low from EURUSD Wednesday and jump in implied volatility shows this still moves markets
• This event is critical to the steady bearish trend on the Euro and EURUSD
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The ECB approved a QE program at its January policy meeting, but that doesn't mean the Euro is fully discounted for the future of monetary policy. A fresh 11-year low from EURUSD the day before the central bank's next gathering shows the bias is still unfolding in favor of the bears while a swell in overnight implied volatility measures suggests there is still significant anxiety in the future of policy from the world's second largest central bank. FX traders should gauge the market's short-term response to this important event risk; but it is the lasting implications for trends for the Euro, European capital markets and global sentiment that truly matter. We discuss the upcoming ECB rate decision and its potential impact on the markets in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.