Is that now it for EUR/USD bulls at 1.0942 highs after ECB?

By FXStreet FXStreet (Guatemala) – EUR/USD keeps teasing the upside and threatens deep and long-term stops through the 1.09 handle. EUR/USD has rallied over 2.75% alone today on the back of the ECB outcome that was quite a fiasco in respect to the build up and ECB let downs. The market was caught short and the euro tripped stops all the way from the lower end of 1.05-1.088 and now tests territory on the 1.09 handle, 1.0942 the high so far.

Draghi behaving badly

Draghi had built up a short euro platform over the last number of meetings by telling markets that he will need to extend the QE as one of over 20 options at their disposal to battle against deflation and negative global headwinds that threaten the EZ’s growth outlook.

FT messed up

Before the FT leaked the wrong information that there would be no action from the ECB, the market was expecting in the general region of a €10-20bn increase of QE, but instead the market only got an extension of the end date of the current programme up to March 2017.

The deposit rate was only cut by the lower end of the 10-20 basis point expectations to -0.3% …read more

Source:: FX Street