Nearly two years ago, then-Fed Chairman Ben Bernanke (remember him?) suggested that the Federal Reserve was planning to gradually reduce the pace of its quantitative easing, a process that quickly became known as “tapering.”
The euro finished last week on a sour note, with EUR/USD falling to its lowest level in a month. After a gap lower to kick off this week, traders feared more of the same, but stronger-than-anticipated economic data from the Eurozone turned sentiment around.
Most European Central Bank policy makers judged that buying government debt was the only option big enough to fight the threat of deflation when they met last month, an official account of the debate shows.