23.10.201511:20 Forex Analysis & Reviews: Global macro overview for 23/10/2015

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Global macro overview for 23/10/2015:

The EUR/USD pair plunged 250 pips yesterday after the ECB president Mario Draghi had hinted a possibility of QE extension by the end of 2015. Despite the fact that the interest rate remained unchanged at 0.05%, together with deposit facility rate at -0.20% and marginal lending facility 0.30%, the euro dropped sharply, closing below 1.11 for the first time since mid-August. Currently, the ECB is buying EUR 60 billion a month and further easing might continue beyond 2016 if needed. If Mario Draghi would increase the QE program above the mentioned level, this would mean that another rate cut is on the table.

The EUR/USD pair is currently trading above the 1.1086 support level, around the internal trend line resistance. The next technical resistance is seen at the level of 1.1303.

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