The European Central Bank has rocked financial markets by announcing that it will end its QE program by the end of this year.

One would have expected the Euro to appreciate aggressively following this historical decision, but the currency has collapsed like a house of cards with prices tumbling over 160 pips. Under plans revealed today, the central bank will halve the size of monthly asset purchases from €30bn in September, to €15bn from October until the end of the year. The driving force behind the Euro’s selloff could be the fact that the ECB pledged to keep interest rates at ultralow levels, “at least through the summer of 2019”.

Taking a look at the EURUSD, the currency pair has become extremely bearish with prices sinking towards 1.1680 as of writing. The Euro is poised to conclude horribly depressed this week as investors exploit the downside momentum to push prices lower. The breakdown below 1.1700 could encourage a further decline towards 1.1630.