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EURUSD Major Events in 2016

Sunday, January 1, 2017 1:09 AM GMT

Shortly before the year ends, it’s a nice opportunity to recall the most important market events of 2016.

EUR/USD attracts the majority of the retail traders and institutional players. Dominated by the policies of Mario Draghi and Janet Yellen then factoring in the Brexit in the first half of the year and a Trump victory in US elections in the last quarter, 2016 was an eventful year for EUR/USD traders.

Draghi expanded ECB stimulus with more QE and lower rates in order to face the revised down outlook for growth, reflecting weakening global prospects. With bond purchases, the ECB hopes to lower interest rates across the bloc’s €10 trillion economy, thereby boosting lending, growth and inflation.

On the other hand the market was anticipating the rate hike within 2016 by Yellen. Finally FED increased its key interest rate by 0.25%. It was just the second time in a decade that the Fed has raised rates. The first was in December 2015.

Brexit was a catalyst event for the half of the year. Brexit was not expected while markets was pricing in the “NO” result.

Last but not least we had the unexpected results of the US elections and Trump’s effect, which caused another volatile day confusing traders and giving the momentum for EURUSD’s new lows.

This chart shows the price reaction on the major events :

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