Friday saw the common currency of the European Union advance against the U.S. dollar one day after the embattled 17-nation monetary unit slipped when the European Central Bank did not act immediately to challenge the sovereign debt scourge, according to Reuters.
The central bank of Europe is likely to implement a variation of the U.S.-style quantitative easing programs, Bloomberg reports. While President Mario Draghi with the ECB did not disclose specific details about the plan he did say that the effort aims to minimize Spanish and Italian borrowing costs.
"I sense from Draghi's comments he is inching toward QE and now trying to get other ECB members to sign that off. It seems to me inevitable," chief economist Neil Williams with Hermes Fund Management told Bloomberg.
Reuters reports the ECB's plan would not advance until September and only under strict conditions.
Losses to the euro one day prior trace back in part to lofty expectations of the bank being unfulfilled after the body convened for the first time since the chief last week said he would advocate for the integrity of the monetary unit.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.