Draghi pushed the dollar up, dragged the gold down

Gold has fallen, and the dollar has risen since its three-week minimum against the euro after ECB chief Mario Draghi signaled that any normalization of monetary policy would be very "smooth" and "gradual".
The single currency recorded a significant decline over all major currencies, following Draggy's comments.
Draghi also said that inflation is still weak, which is likely to predict a slight change in ECB policy.
The spot price of gold fell 0.3 percent to $ 1 321.09 per ounce. It reached a one-week high of $ 1,340.42 an ounce on Wednesday before closing 0.6% down. Gold futures fell 0.4 percent to $ 1,321.80.
According to Georgette Boyle, an analyst at ABN Amro, the dollar will remain a key driver of the gold price. The only reason the gold price rose to $ 1,340 per ounce was the weakness of the US currency last week, the analyst said.

Draghi: Cryptocurrencies are not mature enough to be regulated

Apparently, the head of the ECB, Mario Draghi, has become bored, or he just wants to divert the market attention after commenting on the cryptocurrencies. All eyes are on Draghi, looking for potential signs of what the ECB's future monetary stimulus policy will be. Draghi, however, surprised everybody, by saying that cryptocurrencies, are not mature enough to be regulated. According to him, digital currencies need to be approached with particular attention in relation to the potential risks associated with them.
Until now, the different regulators have adopted a different approach to cryptocurrencies. It varies widely from their recognition from Japan, to the ICO ban in China, and the closure of the Crypto-Exchanges.
Last month, in a formal statement to the European Parliament on Economic and Monetary Affairs, Draghi said the ECB had no competence to regulate cryptocurrencies.

Draghi: Be careful with the expensive euro

The head of the ECB, Mario Draghi, once again expressed his fears of the appreciation of the euro. Speaking on Monday, Draghi said the recent volatility in the euro exchange rate is a serious source of uncertainty and requires serious monitoring.
The euro rose from 1.05 at the beginning of the year, to about 1.19 dollars, at the moment. Further growth of the single currency against the dollar and other major currencies will seriously burden the "old continent".
Draghi told the European Parliament that the economic situation of the eurozone is stable and broad-based.
Further clarification on the ECB's future policy on incentives and record low interest rates is expected to be given at the next meeting of the Bank's Monetary Policy Committee on 26 October.
It is then that investors expect specific deadlines to end the program of incentives and the gradual normalization of interest rates in the euro area.
At the moment, the ECB buys back bonds worth 60 billion euros per month.
Speculation on ending incentives and normalizing interest rates was largely the basis for the appreciation of the single currency.
However, after the strong rise in the euro, the single currency seems to be in a correction mode, and it is now back below the threshold of 1.1900 on the first day of this week.
Draghi's comments helped further depreciation of the euro, which dropped to about $1.1850.

Draghi worried about the power of the euro?

The head of the ECB, Mario Draghi, is worried about the strength of the single currency against the dollar and other major currencies. Since the beginning of the year, the euro has risen by 12% against the dollar.
Thus, Draghi expressed same fears, repeatedly given by the previous ECB chief, Jean-Claude Trichet, that the strong euro could seriously hurt growth prospects for the eurozone economy.
In addition, the strong European currency puts a pole in the wheel of inflation. And inflation is one of the main threats to the growth of the eurozone economy.

By the end of the year ECB may extend the program of quantitative easing

Thursday was very eventful for the major currency pair. Immediately after the September meeting of the European Central Bank, the euro/dollar rose sharply and touched a two-week high at 1.1316, but quickly came back under the 1.13.
ECB left the interest rate at zero, the deposit rate at -0.4% and the monthly purchase of assets amount to 80 billion euro. In his comments after the meeting, Mario Draghi said that QE will continue until the designated period (March of the following year) or longer, if adjustments of inflation are required. The consumer price index, on the assessment of the ECB, is steadily improving. Eurozone GDP in the third quarter will be equal to growth in April-June this year, and in general, the ECB expected growth of the region's GDP by 1.7% by the end of 2016.
Investors appear to be reasoned as follows: while the statistics for the euro area at most part is positive, the European regulator will not increase or extend QE. However, such a possibility is present for further meetings. March 2017 is not so far away as it seems. For half a year significant improvement in the European economic system could not happen, and the ECB is not one of those, who would make desperate attempts to align the boat at the last minute. Typically, Mario Draghi warnes markets in advance about the bank's readiness to act. It is possible that in November and December, the ECB would inform the capital markets of the intention to expand or extend the QE. In the meantime, let the euro fans rejoice.