ECB decided to act by cutting QE to 30 billion per month from 60 billion per month from January 2018. Though this action should be considered a bullish move, the ECB also announced that they will be extending it till at least September 2018 with room to extend it further has woken up the bears.
During the ECB press conference, Mario Draghi also said they will keep the QE open ended, leaving the room to increase QE if needed.
He also reduced his outlook for inflation saying the remainder of this year he expected inflation to remain at 1.5% then dropping to 1.2% in 2018 before returning to 1.5% in 2019.
Draghi also warned that the FX market presents a risk to growth which many took as indication that a lower euro is desirable.
Market reacted with bears rushing into the market which then saw the EUR collapse against the USD and GBP. EUR/USD at the time of writing it is currently trading at 1.1719. The EUR/GBP at the time of writing is currently trading at 0.8887