The Euro continues to rise and is currently at $1.11, having recovered from 2-year lows in the immediate aftermath of yesterday’s ECB announcement, when it traded at $1.09. Despite the announcement of a rate cut, the start of a new asset purchase program and fresh bank incentives, the markets appear, for now, unwilling to walk away from the single currency.
The European Central Bank sent out a clear message, that no effort will be spared to create more accommodating conditions for growth and to closer to the target inflation; this appears to have inspired confidence in investors, that better days lie ahead for the continent’s economy. At the same time, positive signs coming from both Washington and Beijing have lightened up market sentiment, leading to greater risk appetite, which is beneficial for the Euro.
