LONDON, August 3, 2012 /PRNewswire/ --
On Thursday, 2 August, the markets fell sharply after European Central Bank President Mario Draghi dashed hopes that he would make an imminent move to announce new stimulus measures to help ease the debt burden of southern Europe.
Following the European Central Bank's (ECB) announcement just after midday, the EUR/USD momentarily peaked, only to fall sharply soon after as Draghi kicked the can further down the road and turned his back on initial hints that he would re-activate bond purchases in the primary market.
According to Chief Global Strategist at City Index, Ashraf Laidi, the market turned around when Draghi 'put the onus back on national governments when he reiterated that only they have the power to reactivate the ESM's borrowing via the bond market and only they have the power to agree on granting ESM license in order for it to raise funds from the ECB.'
He added that since the markets are well aware of Germany's opposition to the ESM license 'the obstacle to expanding ESM fire-power may have already been reached'.
With that, EUR/USD fell to 1.2174 (14.05 BST) - a significant fall from a session high of 1.2405.
How to Trade Forex following the ECB Decision
Following the ECB's decision on Thursday, 2 August, you can take a position through a City Index forex trading account.
Through the account, you can benefit from access to:
- 37 spot forex markets
- Leverage ratio from 20:1 to 400:1
- Powerful Trading Platforms
- Capped Variable Spreads from 0.8 pips on EUR/USD
- Range of Risk Management Tools
Start Trading Forex
To start trading forex across a range of platforms - including mobile and tablet - you can apply for a forex trading account through the City Index website.
Read More Forex Trading Tips
If you found this article helpful, you may want to read more just like this. You can access a range of forex trading tips, guides and articles through the Forex Trading section of the City Index website.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.
We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk for details.
Spread betting, CFD trading and forex trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
SOURCE City Index