EUR/USD Drops Below 1.24 for First Time in Two Years

The euro fell below $1.24 for first time since August 2012 on Thursday.  The euro plunged to its lowest in more than two years against the dollar on Thursday after European Central Bank President Mario Draghi affirmed his pledge to use unconventional measures to stimulate a sluggish euro zone economy.

He added that the impact of the ECB’s asset-buying program on its balance sheet would be sizable. His remarks, which came after the ECB kept interest rates at a record low of 0.05 percent, were a green light for investors to sell the euro.

Net euro short positions last week were the largest since July 2012.  In a press briefing, Draghi said ECB members are all prepared to take more policy action if necessary and the bank’s staff will prepare the groundwork. He reiterated that the risks to the euro zone’s recovery remained tilted to the downside.

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