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Will the ECB announcement unsettle the euro?

The governing council of the European Central Bank will release their latest monetary policy decision at a press conference tomorrow.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Euro
Source: Bloomberg

With inflation still not hitting the bank’s target of just under 2%, many analysts are expecting Mario Draghi and his team to reveal plans for further economic stimulus.

Given elevated market expectations of further easing, one suspects we will need to see a sizeable cut to the deposit rate and a large increase to the asset purchase program (QE), while also increasing the range of assets and an extension to the QE program to satisfy traders. If the market feels underwhelmed, we could easily see EUR/USD aggressively rally and European stocks sold.

However, if there is one central banker that’s in-tune and respected by the market globally, it would be Mario Draghi, and traders are used to Mr Draghi over delivering.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.