European Central Bank (ECB) President Mario Draghi spoke in Brussels before the European Parliament's Committee on Economic and Monetary Affairs on Wednesday saying that the future of the quantitative easing program is difficult to forecast.
"more time is needed to determine whether the loss of growth momentum in emerging markets is of a temporary or permanent nature and to assess the driving forces behind recent episodes of severe financial turbulence" he said.
European economy like global economy has been suppressed by China’s economic slowdown which has dimmed commodity prices which is a worry for the ECB as inflation which is now at 0.1 percent might not reach its 2 percent target by next year.
"The asset purchase program has sufficient in built flexibility, we will adjust its size, composition and duration as appropriate, if more monetary policy impulses should become necessary".
As for Greece which has been a drawback point for the Eurozone Draghi said that it has made considerable progress in recent months and if it sticks to its bailout program, there could be space for debt relief.
Following Draghi's speech EUR/USD added 0.44 percent to 1.1105 and was expected to find support at 1.1086 and resistance at 1.1209.
“If the current rally in EUR/USD extends to re-test the previous August high of 1.1714 there is a risk Draghi will talk down the euro” said Joseph Capurso from Commonwealth Bank, “But for now there is some further upside pressure in EUR/USD. We don’t appreciate a retest of the August highs for at least some weeks”.
EUR/NZD lost 0.17 percent to 1.7785.
Elsewhere total British car production rose almost 41 percent to 99.919 cars for August according to the Society of Motor Manufacturers and Traders (SMMT).
"The quieter summer months are traditionally subject to fluctuation as production is paused for essential upgrades, and August's strong growth wasn't unexpected given the 22.1 percent fall in the same month last year when the 2014 holiday period fell" SMMT's chief executive, Mike Hawkes said.
The SMMT said that 1.01 million cars rolled off production lines over the first eight months of the year driven by the rise in car built for the domestic British market.
EUR/GBP lost 0.2 percent to 73.29 pence.
GoPro Inc (NASDAQ:GPRO) Shares are in freefall
In June 2014 GoPro went public and set the initial price at $24 per share. Very soon the price per share jumped enormously till $100. But this year the situation has changed dramatically and the shares are keep falling to its initial price, now they are estimated as $31 per share.
The crush started in early September after the announcement of Ambarella Inc (NASDAQ:AMBA) – the key chip supplier of GoPro, telling that customers shouldn’t expect any new products from GoPro this year. Raymond James analyst Travis McCourt, told: “In any event, unless GoPro has a product launching with a different image processing vendor, which would be a first for the company, it is looking more likely that the GoPro Hero4 Session [launched in July] was the company’s biggest product launch of the year.”
This statement caused immediate drop by 10%. Alex Gauna, an analyst who covers GoPro at JMP Securities told: "Consumers, because of Apple (NASDAQ:AAPL), have become conditioned to having new product options every year. We would be disappointed not to see a new product."
GoPro plans a loud comeback by entering the drone market. GoPro will launch the consumer drone in the first half of the next year.