EUR/USD Volatility At High

ECB Tapers bond purchases causing the EUR/USD to implode due to high volatility. That's what the day brought as we were observing the press conference held by Mario Draghi, the ECB President. The meeting turned out to be the major event of the day as it's effects were felt all over the currency markets.

President Draghi stated in his speech that the ECB will continue its easy monetary policy. The Euro was heavily impacted by the announcement driving the pair to a low of 1.0602.

Before the news, the US dollar was weaker than the Euro trading around 1.08. In the eye of the storm the pair reached a high of 1.0872 and then nosedived for the last three hours.

Now the EUR/USD is trading at 1.0627, only slightly better than the worst for today. Into the midst of this new cycle of bullishness in the aftermath of the election of Donald Trump as President the US dollar and the US equities are enjoying a series of record breakers. All this causes strong interest by traders and investors thus depreciating other markets and assets.

In this light, the FED is meeting on 13-14 Dec to discuss whether or not to raise rates and as rumor has it, they most likely will.

Chart: EUR/USD H1