ECB Extends QE – But Markets do not like it.

As announced by Mario Draghi, he extended QE till March 2017. But did not increase the amount. This surprises me as I expected the ECB to do more given his comments earlier that the “ECB would do what it must”. It seems I was wrong on this one, and today the Euro Bulls win this round.

Further things that make me wonder given the markets reaction:

1.) Did Draghi fail to communicate his intentions properly?
2.) Or was it a failure to make the other members go along with another plan that he had?
3.) Are they waiting for the FED to move first?

It remains to be seen what results this will have on Eurozone inflation and growth, but many feel that in this case, the ECB has not done enough.


  1. Thanks a lot for the update, I was wondering if it was just me that had completely misunderstood 🙂 I managed to lose about 15% of my equity when everything hit SLs within a minute, but oh well – you had warned that it would be extremely volatile today, stupid me for not heeding the advice 😉 In the interest of staying positive, I consider it very expensive movie tickets for one adrenaline rush of a horror flick 😉 (as well as a – literally – valuable lesson learned ;-))

  2. our fundamentals are still sound right?euro will rocket down now moving till friday and more moving till fed rate hike correct?

    1. It should fall against the dollar if NFPs are solid, which I believe yes. And further so at rate hike.
      In terms of our account, it doesn’t affect us so much since we do not have any EURO risk at the moment.

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