News & Data:
The ECB delivered this time. The central bank announced a €60 billion/per month QE programme that will start in March and not finish until September 2016. While the market reaction wasn't very clear during the press conference, with EUR/USD swinging from 1.15 to 1.16 and back, the price action was very clear after Draghi finished. Selling resumed and the pair finished the day around 1.1370, down almost 300 pips from the day's high. It reached a fresh low in Asia, at 1.1313. There will still be high selling interest at any larger rally and 1.15 is now seen as pivotal short-term resistance level.
Meanwhile, GBP/USD broke below the 1.50 level, dragged lower by the Euro. The outlook is bearish as well and we are likely heading for a test of the 2013 low of 1.4812 soon. AUD/USD fell sub-0.80 as speculation on a possible RBA rate cut increased. The Canadian Dollar didn't benefit much from the rally in Oil, with the USD/CAD now above 1.24.
Looking ahead, we have a series of PMI data out of the Euro Zone countries, followed by UK retail sales. The main event of the day will be Canadian inflation data at 13:30.