Instant view: Euro sinks as Draghi underlines downside risks to economy

14:00 12 September 2019

Summary:

  • Euro continues sliding as Draghi speaks during his press conference
  • Draghi stresses downside risks ahead, ECB cuts macro forecasts
  • Details regarding a two-tiered system aimed at easing downward pressure on banks’ profitability to be released right after the press conference

The euro keeps declining when Mario Draghi is speaking at his press conference in Frankfurt. Departing ECB’s President signalled a lot of downside risks to the economic outlook including protectionism and a downturn in manufacturing. The ECB also revised down its projections to both growth and inflation with inflation seen at 1.5% in 2021, below the ECB’s target. Draghi also said that the details regarding a two-tiered system aimed at easing downward pressure on banks’ profitability to be released right after the press conference. As usual, he also urged governments with fiscal space to act in a timely manner.

The EURUSD is sinking when Draghi is speaking in Frankfurt. Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back

Join over 1.6 Million investors from around the world