Mario Draghi has certainly reasserted his leadership and made some seriously dovish statements, vowing to do more. Here are more comments following the live coverage and a chart.
EUR/USD fell below support at 1.2440 and continued below 1.24.
From Draghi’s press conference:
- Monetary policies are going in different directions.
- We know the risks are to the downside, and everybody knows that.
- 2012 balance sheet levels refers to post LTRO levels of March 2012.
- It’s part of normal diversity to disagree.
- No North-South divide.
- Minutes will keep ECB independence
- Governing Council signed off the introductory statement unanimously.
- Dinner went better than expected.
- Plenty of people have always been involved in preparation of measures.
- Buying is being outsourced but also using central banks.
- Confident that the measures will have an impact on the medium term expectations due to various reasons.
- Eligible universe is 1 trillion euros.
- Will see more issuance of corporate bonds and ABS.
- Tasked staff and committees to prepare further measures if needed
- ECB takes minimal credit risk with ABS, and conservative.
- Press conference ends with EUR/USD off the lows at 1.2420, but still under resistance at 1.2440.
More:
- Expect Draghi To Prevail; Staying Short EUR/USD targeting 1.18 – BNPP
- Watch 1.2450 on EUR/USD – Elliott Wave Analysis
- Did Bundesbankers only vent frustration, unable to stop the inevitable? Sell opportunity in EUR/USD?
- Draghi discontent: EUR/USD leaps on internal opposition to trillion euro target surfaces
