EUR/USD may have finally entered the ECB’s comfort zone, even without Draghi’s help. The pair hit a new low of 1.24998 – just 0.2 pips so far, but still a dip.  A strong NFP already sent EUR/USD to a new 2 year low.. And then, no trouble from the services PMI sent EUR/USD to the 1.24 handle, or USD/EUR to the 0.80 handle. It’s 2012 all over again.
Update: according to the recent data, the new low is 1.24996 – 0.4 pips below the round number. According to another source, the low is only 1.25006 – 0.6 pips above the round number. The pair is really giving a fight here.
While inflation in the euro-zone hasn’t risen on the low inflation, a lower level of the exchange rate for a longer period of time could do the job for Draghi.
The president of the ECB refrained from rocking the boat and didn’t drop any bombs. He just reiterated his commitment to reach his mandate, using non-conventional tools if necessary.
