Mario Draghi gave an extremely unpleasant surprise yesterday, saying that the ECB's quantitative easing program has been extended for another nine months. If only recently, everyone was sure that the printing press will be stopped in December, now it will have to wait until the end of next summer. The head of the ECB argued for such a strange decision with low inflation rates, saying that they need to be supported by additional stimulus measures. Naturally, investors reacted negatively to the decision of the ECB, and the euro collapsed, pulling other currencies, particularly the pound.
Today, one should expect correction. Although, the general trend for the dollar is now clear. The reason for the correction is not only the excessive overbought dollar but also that today there are preliminary data on US GDP for the third quarter. This should show a significant slowdown in economic growth.
The EUR/USD pair will grow to 1.1700.
The GBP/USD pair will rise to 1.3175.
