The final press conference from ECB president Mario Draghi has seemingly delivered little in terms of surprises so far and unless there’s a twist in the tail this looks like it has been pretty much a non-event as far as the markets are concerned. The most standout comments were as follows:
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Risks to the economic outlook remain on the downside
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Headline inflation likely to decline further
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Ample degree of monetary policy is still necessary
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Lower likelihood of a hard Brexit has improved the situation
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Quite a bit of time till QE limits are a problem
One point of interest could be the omission of “tilted” in the comment regarding the economic outlook but this is likely just a slip of the tongue and not really something to be read into. Incoming president Christine Lagarde attended the meeting but Draghi was keen to stress that she didn’t take part in the discussions regarding policy.
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It’s been an eventful day for the EURUSD with several clear moves on the back of economic releases. The pair has attempted to move higher as Draghi talked but there’s not really been a clear direction due to a lack of any real surprises in his final press conference. Source: xStation
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