EUR/USD downtrend that started several months back somewhere in June 2014 is going strong. EUR/USD started the new year with a 29 months low when ECB President said that bolder steps are needed to make the stimulus work. European Central Bank President Mario Draghi said the risk of the central bank not fulfilling its mandate of preserving price stability was higher now than half a year ago, and reiterated its readiness to act early this year should it become necessary. In an interview with German financial daily Handelsblatt, Draghi urged politicians to implement necessary reforms, reduce tax burdens and cut red tape to support the euro zone recovery, which Draghi said was “fragile and uneven”.
ECB Council meeting scheduled on 22nd January will be keenly watched by the market analysts to look for the bolder steps that are required. Market analysts are predicting ECB will also start buying the sovereign debt following the footsteps of FED, BOE and JCB. As a currency trader you should keenly watch what ECB does.