The euro is diving as Draghi reloads the bazooka

The euro is down over 1% against the dollar after European Central Bank (ECB) President Mario Draghi hinted he could loosen monetary policy even further to prop up the continent's economy.

Draghi told the European Parliament that the ECB is "ready to do its part" to make Europe more resilient. The ECB cuts its deposit rate for banks to -0.3% and pledged to spend €60 billion a month buying up bonds until March 2017.

Draghi reiterated that "the Governing Council will review and possibly reconsider the monetary policy stance in early March," and "will not hesitate to act" if there's cause for concern.

Monday's comments have signalled to markets that more stimulus may be on the way - Draghi is reloading his bazooka.

Here's how the euro/dollar trade looks as at 3.45 p.m. GMT (10.45 a.m. ET):

Draghi also addressed the recent volatility in banking stocks, reassuring politicians that "the situation in the banking sector now is very different from what it was in 2012." He stressed how capital buffers are now much stronger, meaning banks can withstand share price shocks.

NOW WATCH: New York City rental prices are out of control

Please enable Javascript to watch this video