The euro nursed hefty losses early on Friday, having suffered its biggest one-day fall in nearly three years against the greenback after the European Central Bank delivered a fresh round of stimulus and promised even more if needed.
The common currency slumped over 1 percent against most of its major peers and notched a 1.6 percent drop on the dollar – the biggest one-day decline since November 2011. The ECB cut interest rates to fresh record lows and announced plans to buy asset-backed securities (ABS) and covered bonds in October.
“While President Draghi declined to provide a size estimate for the asset purchase program, he indicated that…the ECB aimed to increase its balance sheet back towards levels seen in 2012, which would imply a roughly 1 trillion euros, or a 50 percent increase, from current levels,” analysts at BNP Paribas wrote in a note to clients.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.