However, the surprisingly weak ECB action triggered long buys in a beleaguered euro currency that fad fallen in the weeks leading up to the meeting. Additionally, Fawad Razaqzada, a technical analyst at Forex.com, argues that further gains in the euro were the result of a short squeeze, MarketWatch reports. Investors with heavy short positions are forced to cover, or buy back, their shorts in the event of a sudden share appreciation and buying momentum from short sellers covering their options contracts help bolster share prices even further.

“The ECB surprised the market — but it wasn’t the kind of surprise that investors were expecting,” Razaqzada told MarketWatch.

CurrencyShares Euro Currency Trust

For more information on the euro currency, visit our euro category.

Max Chen contributed to this article.

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