The Euro dropped to a 4-year low at $1.2035 following ECB president’s comments regarding upcoming stimulus plans. During an interview today, Mr. Draghi hinted that deflationary risks are higher than six months ago and that the ECB is focusing on adjusting the size and speed of its actions. In reaction to the comments, Italian and Spanish yields dropped as investors see the likelihood of a European QE increasing.
Euro dropped 0.56% to 1.2042 against the USD, its lowest rate since 2010, after ECB President Draghi indicated that the bank might launch a full-scale quantitative easing. Draghi mentioned low inflation and the risk of declining consumer prices in the Eurozone, and that the ECB was willing to change the scope, pace and composition of measures in 2015.
Oil prices and futures continued to fall into the New Year as Russia and Iraq reported record high values of supply. However, it seems there is discord among the members of the OPEC, after an Iran government official stated that Saudi Arabia’s lack of action after the glut was a strategic mistake. The economies of oil-exporting countries like Iran and Nigeria seem adversely affected by the drop in oil prices.