Today the euro seems to be doing very well, climbing further up, based on expectations that the European Central Bank will reveal more about how it plans to ease out of its stimulus program and turn towards a more hawkish policy making.
The markets were also able to stabilize a bit off of the lack of news regarding the conflict with North Korea and Trump’s administration’s successful deal to extend the deadline for solving the issues with governmental debt which cast a dark cloud over Congress during the past month.
A change in the approach of the ECB has been long-awaited by investors, who hope that the consistently strong economic data from around the eurozone would convince the European Central Bank to start boosting the euro. The EUR/USD even managed to go beyond 1.1950. Draghi has so far been adamant in maintaining the stimulus program, but more and more people continue to expect he would hint at a change at least from the beginning of 2018.
The ECB previously announced it would not change its policy and would continue the stimulus program until the end of 2017 at least. Quite contrary to expectations, it also showed a readiness to increase stimulus packages from 2018 if the desired 2% inflation rate continues to escape the eurozone.
