The president of the ECB is back on track, acknowledging the deteriorating situation for the global economy and for price stability and promising more action in March. This pushed the euro lower. His institution is not the first one to promise more stimulus and this provided the necessary fuel for rallies in oil, stocks, commodity currencies and also the pound. It also weakens the safe have euro and yen, which both suffered stimulus talk. The BOJ seems ready to act next week as well and so could the Fed – at least by toning down expectations. Expectations for a dovish Fed could already be weakening the greenback.
This is the video of the full morning show:
