Thursday, 10 March 2016

XE Market Analysis: Asia - Mar 10, 2016

FX trade was extremely volatile in early N.Y. trade on Thursday, with the focus entirely on the ECB announcement. The Bank cut the deposit rate to -.40% as expected, though also cur the refi rate to 0.0%, and upped its monthly QE by a third to EUR 80 bln. The initial reaction was for EUR-USD to skid sharply, and equities rally hard, though as Draghi more or less signaled the end to the easing cycle, the euro ramped higher. From a base of 1.0822, EUR-USD spiked up to highs of 1.1115 during the press conference, and later to a peak of 1.1228.



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