Forex Flash: Draghi continues to make waves – UBS

FXstreet.com (Barcelona) - Risk was somewhat better behaved overnight as the RBA decision suggested there was no need to hit the panic button yet. However, stocks are clearly mixed across Asia in anticipation of more turbulent waters to come. According to Research Analyst Gareth Berry at UBS, "The RBA remained on hold but its warnings over broader global conditions probably warranted concern."

Moreover, investors remain intensely focused on what form the ECB's new bond-buying program will take. Despite the US holiday, the EURUSD suddenly jumped 60 pips overnight when ECB President Draghi claimed that the purchase of "bonds with a maturity of up to three years would not be state financing". Yields on 2y Italian, Spanish, and Portuguese debt each fell over 10 bp in response.