The euro plunged over 300 pips against the dollar soon after the ECB because the central bank’s case for keeping record low rates for another year was longer than markets expected. So while the ECB announced it plans to end QE by the end of this year, the euro was mostly negatively impacted by the delay in rate hikes, especially as this was telegraphed a day after the U.S. Fed bumped up its rates by 25 basis points, with more to come this year and has already begun its rate hike cycle. Meanwhile, trade war tensions were escalated after the United States slapped $50 billion worth of tariffs on China.
ECB Stole the Show
Weekly Report - 18/06/2018