Futures Market News
Euro benefits from news about ECB bond purchases
Sep 05, 2012 11:03 AM
News about President Mario Draghi with the central bank of Europe intending to announce large amounts of bond purchases helped push up the value of the common currency of the European Union on Wednesday morning, according to Bloomberg.
The action has been long-awaited as a method of confronting the sovereign debt crisis. Draghi said in July the ECB will do "whatever it takes" to defend regional integrity as the debt scourge nears three years of attacking banks, markets and public finance systems of the 17-nation bloc. The plan is likely to be announced on Thursday when the ECB convenes.
"The move looks like a sugar high as we've been anticipating Draghi's plan, but it heightens curiosity going into the press conference tomorrow," corporate currency sales desk director Carl Forcheski with Societe Generale in New York told the news source. "There's still a lot to be done with the German constitutional vote coming up."
In response to the news, the currency increased 0.3 percent against the U.S. dollar.
Also benefitting from the news were European stocks, according to Reuters. Bond yields in Spain and Italy also dropped.
Don’t Miss Our News Updates!
Follow our breaking news stories and get a unique take on current events that may impact the commodity futures markets. Multiple new articles are posted each weekday. Subscribe to our commodity news updates by email, and receive real-time updates with our RSS feed, follow us on Twitter @DanielsTrading, become a fan on Facebook to stay informed.
SPECIAL OFFER: Insider Market Advisory FREE Trial
Information is power. Gain an edge with daily commodity futures market updates!
With your free trial membership, you’ll receive full access to trade analysis and recommendations for various markets, daily fundamental and technical market overviews, future price outlooks, and more!
Special Offer
Register for Your Free 2-Week Trial of the dt Insider Market Advisory!
With your free trial membership, you'll receive full access to our exclusive trade recommendation service and all of the timely and accurate trade information you need to feel comfortable participating in the markets.






