The European Central Bank has announced a QE (Quantitative Easing) programme totalling some Euro 1.1 billion in an effort to provide economic stimulus to the Eurozone in general. The strategy being to purchase bonds monthy to the tune of Euro 60 billion that could be isssued by Governments ( Sovereign Bonds) or large corporations. The cheap funding cascades down and in theory arrives in all corners of the Eurozone.

David Lamb, senior dealer at the foreign exchange specialists FEXCO, comments:

 "The first victim of the ECB's war on deflation was the Euro. The single currency duly hit the deck within seconds of Mario Draghi's announcement that he is finally pulling the QE trigger.

"While a fall in the Euro had been expected, the scale of the ECB's bond buying programme took the markets by surprise and sent the single currency plunging to a seven-year low against the Pound.

"But to say the decision to set the Eurozone's money presses rolling is too little too late is an understatement. It's telling that Mario Draghi felt the need to manage expectations, warning Eurozone governments that they must make structural reforms too.

"The ECB's money printing bazooka is no magic wand.

"While Eurozone stock markets have rallied at the news, the revelation that even now the ECB's governing council was split on the QE decision shows the challenges of providing a single monetary policy for 19 economies.