EUR/USD down 1%. Draghi said, “We are ready to act”.

EUR/USD plunged today during European session following ECB President Mario Draghi’s speech. As of 12:00 PM EST the currency pair was trading at 1.1142, down 1.01% from the previous close.

Speaking in the European Parliament, Draghi reported that European Central Bank was ready to do its part to strengthen the Eurozone economy, adding, “We will not hesitate to act”. He indicated a further monetary stimulus on March as the Eurozone struggled weak investment, slow manufacturing growth, and uncertainty about the health of the global economy. The EUR/USD dropped to its daily low of 1.1128 after these remarks.

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In addition, Mario Draghi tried to calm fears about the health of European banks after a recent stock sell-off, announcing that the banks are now better protected from collapse than before the financial crisis. To remind, the biggest Eurozone banks lost more than a quarter of their market capitalization since the start of the year.

European stock gained in value today. The performance of major indices is presented below:

  • FTSE 100 increased by 2.04% closing at 5,824.28.
  • CAC 40 finished the session at 4,115.25, up 3.01%.
  • Euro Stoxx 50 was trading at 2,833.87 as of 5:50 PM GMT, which is 2.82% above the previous close.

Oil prices opened lower today, but moderately recovered during European trading hours and were trading above their previous closing prices at the end of European session. As of 11:43 AM EST the WTI Crude was trading at 29.84 USD/bbl, up 1.36% and Brent Crude at 33.63 USD/bbl, 0.81% above the previous close.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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