Draghi fails in his attempt to cap the euro
Draghi did his best this afternoon to cap the euro, failing quite spectacularly!
During his press conference, the ECB President noted that officials were unanimous in not outlining a timeframe on tapering, stating the Central Bank ‘was not there yet’. Many would have seen this in a dovish light and possibly bearish for the single currency, but much the opposite appears to be taking place. The call for patience, and thus, failure to decipher further information on Monetary Policy would often give a tainted light on Draghi, but it seems markets buy-into recent uplifts in inflation with EURUSD soaring just-shy of 1.1600 once again. Despite talking of inflation stresses again, inflation is higher and the bloc state is performing better, so we shouldn’t be so shocked to see fresh peaks in the world’s most liquid currency pair.
Euro rises as ECB promises QE discussions ‘in the autumn’ – The Guardian
Euro, bond yields climb as Draghi flags tightening talks in autumn – Reuters
Alex Lydall comments on ECB Press Conference