Mario Draghi is at it again!!
Immediately after a short remark from ECB president Mario Draghi, the EUR took a full U-Turn on Thursday starting from 1.10 to 1.08. It later reverse to 1.10. The European bond yields also took a small drop down and increased again. All this rush and hush was a result of Just one Statement made by Draghi, as he stated that “He does not look forward to further interest rate cuts”. Expectedly, there was a rush to cover shorts due to the fact that the ECB president is sure that interest rates will remain low for a long time.
Could this be a Communication Error? Well, time will tell.
The EUR rose to 1.08 against the dollar for a while and increased further to 1.12. And against the Yen, the EUR was aggressively 126.33 higher. These are significant increase and a powerful display by the EUR. However, when all settles down, we should expect the EUR to go lower because the Market Direction before today’s meeting was far less bearish for the EUR.
Immediately after a short remark from ECB president Mario Draghi, the EUR took a full U-Turn on Thursday starting from 1.10 to 1.08. It later reverse to 1.10. The European bond yields also took a small drop down and increased again. All this rush and hush was a result of Just one Statement made by Draghi, as he stated that “He does not look forward to further interest rate cuts”. Expectedly, there was a rush to cover shorts due to the fact that the ECB president is sure that interest rates will remain low for a long time.
Could this be a Communication Error? Well, time will tell.
The EUR rose to 1.08 against the dollar for a while and increased further to 1.12. And against the Yen, the EUR was aggressively 126.33 higher. These are significant increase and a powerful display by the EUR. However, when all settles down, we should expect the EUR to go lower because the Market Direction before today’s meeting was far less bearish for the EUR.
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