European Central Bank president Mario Draghi is talking about extending quantitative easing in the eurozone, and now the euro is getting slammed.
On Thursday, the ECB kept interest rates unchanged, but, during his press conference following the decision, Draghi said that while the ECB’s QE program is having a positive impact and is “proceeding smoothly,” the program will be reexamined in December.
As Business Insider’s Mike Bird wrote, this is being taken by markets as a sign that “the bazooka is being primed” in Europe, meaning the ECB could massively expand its QE program, which would likely further devalue the euro.
After Draghi’s comments wrapped up at around 9:30 a.m. ET on Thursday, the euro was down about 1.4% against the dollar to around $1.1177, the lowest level in a few weeks.