The Euro showed strength on Thursday following the European Central Bank announcing a stimulus plan in line with previous expectations. On the other hand, the sterling currency continued to depreciate after the post-Brexit trade negotiations were extended until the weekend.
The ECB has decided to increase the total bond purchase emergency program from 500 billion euros ($ 605.40 million) to 1.85 trillion euros and the program will be extended for 9 months until March 2022. This is to keep government and corporate borrowing costs to a minimum.
However, the move did not surprise investors as the central bank had made earlier explanations of monetary easing and bond purchase plans.
The Euro strengthened 0.30% against the US dollar at the exchange rate of 1.2119 as of 10.00 p.m.
The market is now awaiting further comment from ECB chairman Christine Lagarde on the recent strengthening of the currency.
Among other positive developments for the European Zone zone, EU leaders in Brussels are seen not blocking the 1.8 trillion euro package planned to help revive the economy affected by the Covid-19 pandemic.
