The euro is getting a solid boost as the ECB delivered on its commitment to the PEPP stimulus, by expanding the program by another €600 billion and reassuring the market that it will run through until June next year.
That is alleviating a lot of the anxiety across European assets, with Italian 10-year bonds rallying strongly as yields tumble to 1.40%:
The market expected something around the size of €500 billion so the announcement is slightly on the more positive surprise front, but the fact that they have reaffirmed their commitment i.e. serious business approach to close the yields spread, certainly helps a lot.
EUR/USD is now trading up to 1.1260 levels to fresh highs since 12 March and if buyers can hold a break beyond the swing region around 1.1239-50, there could be further room to explore for the pair towards the upside.
Now, it's over to ECB president Lagarde to seal the deal later on today.