The multi-session trend of rising global equities was interrupted today but the US Dollar has continued lose ground against major currencies.
The Euro has outperformed, with the EUR/USD cross climbing nearly 1% to above 1.13 (its highest level since 10th March) after the European Central Bank announced at its policy meeting today that it would boost and lengthen its quantitative easing program. While the consensus forecast was that the ECB would likely announce a step-up in asset purchases markets appear to have welcome its magnitude.
Specifically the ECB will increase its asset purchases by €600bn, taking the total to €1.35trn, with the duration of the program extended by at least another six months to June 2021. This follows news yesterday that the government of Germany, the Eurozone’s largest economy, had agreed to a €130bn fiscal stimulus program which includes a cut in the rate of VAT.
