Before ECB Meeting, Euro Bounced Back On Short Covering

According to two-euro area central bank officials, to revive inflation in the euro area, ECB President Mario Draghi supported by the Executive Board proposed an asset purchase of 50 billion euros per month to end December 2016. After this report came out from Bloomberg news, the euro underwent a turbulent session in New York on Wednesday.

Although euro rebounded during the day from 1.1542 against the U.S. dollar at the Asian opening, it went up 1.1588 before European open; however, price returned to 1.1547 in the morning in Europe before intensifying over 1.1641 in the morning of New York. Later, euro downed to 1.1565 following the announcement of the purchase plan of ECB. It then bounced to a fresh session high at 1.1680 prior to declining to 1.1562 in the afternoon of New York.   The

European Central Bank was prepared on Thursday to declare that it will purchase government bonds for the first time. Officials worldwide are fortifying or augmenting their pledges to keep loses its monetary policy. The price pressure at the back of increasing dovishness are dwindling with the IMF curtailing this week its prediction of inflation in advanced nations.