Mario Draghi and the ECB may have left rates unchanged, but in the subsequent press conference he detailed a dovish message

Chris Weston

Pepperstone

Mario Draghi and the ECB may have left rates unchanged, but in the subsequent press conference he detailed a dovish message. In it, his easing bias was strengthened with language that went above and beyond what was priced in, showing a gritty determination to do whatever is need to support prices should the Eurozone slide into all out deflation. The discussion around all-out quantitative easing has certainly grown and this is key. I still feel the ECB are on hold for the rest of the year and unlikely to print money to buy assets (although we don't know which ones they would buy as yet). However we now have to firmly focus on the next CPI print on April 16. If this print is weak the EUR will be sold off aggressively. The EUR is now looking vulnerable and I feel EUR/USD can break 1.30 this year.


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Chris Weston
Head of Research
Pepperstone

Highly accomplished financial markets professional, with experience at a number of top-tier global institutions on both the buy and sell-side. A natural communicator with a strong ability to analyse macro-economic trends, capital flows and market...

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