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.
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