Euro Falls to 2-Year Low on ECB Stimulus

On November 7th, FX headlines highlight the euro's drop to a two-year low as ECB President Mario Draghi reaffirms his commitment to stimulus, including bond purchases for two more years. The ECB is prepared to take further action to boost inflation if needed. Meanwhile, the US dollar remains strong against the euro, with upcoming job figures expected to show US labor market recovery. Economists predict a rise in payrolls by 235,000 in October. Attention is also on the Aussie dollar as the RBA releases its quarterly policy statement, following previous cuts in growth and inflation forecasts due to declining mining investments.

What action has the ECB committed to in order to stimulate the economy?

• Raising interest rates

• Buying bonds for at least two years

• Reducing taxes

• Increasing government spending

What is the current trend of the US dollar against the euro?

• It is near multi-year highs

• It is fluctuating

• It is weakening

• It is stable

What is the expected change in US payrolls for October according to economists?

• No change

• An increase of 235,000

• A decrease of 100,000

• An increase of 500,000

What previous action did the RBA take in response to a drop in mining investments?

• Increased interest rates

• Cut growth and inflation forecasts

• Raised growth forecasts

• Introduced new taxes

What is the focus of the upcoming RBA quarterly policy statement?

• Interest rate hikes

• Mining investment strategies

• Growth and inflation forecasts

• Tax reforms