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Session Recap: EUR/USD calms down as Draghi says no rush for QE

FXStreet (San Francisco) - Mario Draghi arrived late today's press conference an after a brief greetings, he said that the ECB will start to buy bonds in October and it will last 2 years; however, Draghi let the people know that the central bank is in no rush to launch a full QE via sovereign bonds.

EUR/USD was shaken at that moment but overall, it seems the EUR/USD has a floor now. According to Kathleen Brooks from Forex.com, "Draghi may have played his EUR put card. In the short term, Draghi may have put a floor under EURUSD, and Tuesday’s low at 1.2570 may be a temporary bottom for this pair."

However, tomorrow's nonfarm payrolls will determine further directions. Brooks points out that "another sub-150k ready for NFPs could trigger a sharper pullback in the EURUSD downtrend, back towards the 1.2800 highs from 24th September."

As for today, the EUR/USD posted its first positive day in the last three session as the pair jumped to test 1.2700 before to close at 1.2665.

The GBP/USD extended losses for third day with the Cable trading at lows since September 10 at 1.6110. The USD/JPY declined for second day as the pair fell to test the 108.00 level. However pair managed to recover ground and to close t 108.40.

Main headlines in the American session

ECB keeps rates unchanged after September cut

US initial jobless claims 287K vs 297K

ECB to buy covered bonds in mid October

ECB's Draghi: Risks to Eurozone economic recovery remain to the downside

ECB's Draghi: Countries with ratings below BBB- included in ABS

ECB announces operational details of asset-backed securities and covered bond purchase programmes

United States ISM New York index rose from previous 57.1 to 63.7 in September

United States Factory Orders (MoM) registered at -10.1%, below expectations (-9.3%) in August

US stocks closed flat after a day of panic

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