Is no news good news?
Draghi’s usual candid and methodical stance this afternoon sees markets clinging to the ‘no news is good news’ philosophy.
Traders were kept on a knife-edge as Draghi raised growth forecasts but stipulated that the Central Bank failed to discuss the ‘sequence’ of monetary policy tools. Despite noting Inflation was set to decrease into the end of this year, a bullish tone was set by markets simply on the fact that no updated bad news was positive momentum for the single state – propping the Euro up once again. He reiterated numerous times that growth, inflation and the exchange rate were discussed, not the programme of Quantitative Easing itself, noting that October would see a further disclosure. It is clear Draghi broadcasting what is essentially nothing new, means markets stay continually upbeat, keeping EURUSD high and GBPEUR low.
Alex Lydall quoted in Pound Sterling Live