Draghi vs The World

What happened Last Friday and why it's so important

Yesterday was a very exciting day in the markets as the European Central Bank President, Mario Draghi, managed to momentarily break the Euro up trend that has been going strong for the past few months.

Draghi hinted yesterday that he would feel “comfortable” taking some sort of action if needed to stop the current trend, meaning that the ECB is willing to step in if needed. He also stated that QE (quantitative easing) could be taken into consideration if no other measure proves successful. The target date has been set for June, this is when a decision will be taken whether or not these “further actions” should be taken.

The current situation has had a strong effect on the U.S Dollar and especially on the $EURUSD pair. We need to be aware that when the Euro gains strength, it is mainly against the Dollar, so the two have a strong bond between them, and the actions of Draghi, will affect the American currency as well.