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3 Sep 2015
EUR/JPY crumbles to 3-month lows on dovish Draghi
FXStreet (Córdoba) - EUR/JPY plummeted to its lowest level in three months after European Central Bank President Mario Draghi said negative inflation rates are possible in the upcoming months.
The ECB downgraded inflation and GDP forecasts and Draghi stated that the QE programme has enough flexibility in terms of size, compositions and duration, raising speculation the bank could expand the programme.
Dovish comments from ECB President put the euro under strong selling pressure, sending EUR/JPY almost 200 pips down to a low of 133.12, last seen May 26. At time of writing, EUR/JPY is trading at 133.20, recording a 1.36% loss on the day.
The ECB downgraded inflation and GDP forecasts and Draghi stated that the QE programme has enough flexibility in terms of size, compositions and duration, raising speculation the bank could expand the programme.
Dovish comments from ECB President put the euro under strong selling pressure, sending EUR/JPY almost 200 pips down to a low of 133.12, last seen May 26. At time of writing, EUR/JPY is trading at 133.20, recording a 1.36% loss on the day.