Euro turns negative as ECB confirms plans to end bonds buys

The euro turned negative, falling 0.1% to $1.08820 as of 1210 GMT after the ECB confirmed its plans to cut bond purchases, commonly known as quantitative easing, this quarter, then end them at some point in the third quarter.

Interest rates will, however, only go up “some time” after the end of bond buys and they will be gradual, the ECB added.

Antje Praefcke, FX analyst at Commerzbank, said the market will not have a preference for the euro over the dollar until there is more clarity about whether the key rate will be raised in the fourth quarter.

“I think the market will want to wait and see how the Ukraine conflict and the energy sanctions develop,” she said.

In the meantime, the dollar index, which measures the greenback against six peers, edged up 0.06% at 99.854, slowly moving closer to its highest since May 2020 of 100.520 touched on Wednesday.

The dollar had been finding support on a surge in Treasury yields this week. But the…

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