The euro came close to cracking on Wednesday as feverish speculation of further policy stimulus in the euro zone drove bond yields to all-time lows and lifted Asian stocks to peaks not seen in almost seven years.
The groundbreaking call by European Central Bank President Mario Draghi for more action on both the monetary and fiscal fronts has markets wagering that fresh steps could come as soon as next week when the central bank’s governing council meets.
“The comments have raised expectations that the ECB could announce even more monetary policy stimulus over coming months,” said Peter Dragicevich, a senior currency and rates strategist at Commonwealth Bank of Australia. “The next program could include broad-based asset purchases.”
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