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The European Central Bank Trims Bond Purchases

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Euro fell as much as 1% after the European Central Bank unexpectedly extended its quantitative-easing programme to exceed 2.2 trillion euros ($2.4 trillion) by the end of 2017. However, the ECB said, it could trim its monthly pace of bond purchases.

The ECB said in a statement that the current asset purchases of €80 billion ($86 billion) a month were due to end on March 2017, but will now be extended until December 2017 and will be cut to €60 billion a month from April 2017.  

On the other hand, the ECB kept the rate on the deposit facility at -0.4%.

The common currency declined to $1.06 and could decline further during the day and touch the support of $1.0530.

Gold fell yesterday as the European Central Bank's decision on quantitative-easing programme supported the Greenback. The Precious metal settled at $1,170 and could settle above such level during the day. 

Also on Thursday, the number of Americans who applied for unemployment benefits declined from a five-month high last week, reinforcing the picture of a healthy job market. The U.S. dollar index, which measures the greenback against a basket of six major rivals, jumped to 101.

Oil prices settled above $50 a barrel, positively affected by the European Central Bank's decision.

The most important economic events:

  • GBP BoE/TNS Inflation Next 12 Mths (NOV): (GMT: 17:00) – Medium – Forecast (94.5)- previous (93.8).
  • USD U. of Michigan Confidence (DEC P): (GMT: 17:00) – Important – Forecast (N/A)- previous (2.2%).
  • USD Baker Hughes U.S. Rig Count (DEC 9): (GMT: 17:00) – Medium

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