Thursday, 6 September 2012

Euro Strengthens on ECB’s Unlimited Bond-Buying Plan

Bloomberg reports,
The euro rose against most of its 16 major peers after two central bank officials said European Central Bank President Mario Draghi will announce unlimited sterilized bond buying to quell the region’s debt crisis.
The 17-nation currency climbed to a two-month high against the dollar last week amid optimism Draghi would announce additional monetary stimulus at tomorrow’s ECB meeting.
We'll see how long this euphoria lasts, my money is on a very short term effect as the traders position themselves to cash in (read the "Moral hazard 101" with professor Draghi for more on this).

Draghi will speak at 2:30 CET in a few hours time, listen to the wizard here.


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