EUR/USD Near 1.2700 after ECB Corporate Bond News

The euro fell sharply against the dollar on Tuesday after Reuters reported the European Central Bank was looking at buying corporate bonds as soon as December in its efforts to revive the stagnating euro zone economy.

The move, if realized, would expand the private-sector asset-buying program the ECB began on Monday, adding to the number of new euros the bank can put into circulation without politically controversial purchases of government bonds.

Flows of leveraged accounts, which largely include hedge funds, have started shifting from profit-taking on short euro positions to funding emerging market trades with euros, according to one trader.

CNBC

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