ECB examines possible extension of QE purchases to municipal bonds - Sources

EURUSD falls on the Reuters headline

• ECB examines extra money printing as economy stays slow
• municipal bonds could be added to shopping list
• move could help Germany, boost slack Italy and Spain

The article - attributed to sources - says the ECB is "examining" whether to buy municipal bonds of "cities such as Paris or regions like Bavaria". It says that the buying can be "one in a series of measures to be rolled out in coming months". It does say, that time is short to implement in December and that it would likely come by March 2016.

The mention of paving the way for more QE, has sent the EURUSD lower. The pair fell back down to the lows for the day at the 1.0706 area. The 1.07000 remains a key support level to get to and through for the bears. The price rebounded quickly back to 1.0725 and settled a bit. Needless to say the markets remain nervous.