Key highlights: Draghi escaltes dovish tone – BBH

By FXStreet FXStreet (Barcelona) – Analysts at BBH noted the key highlights in the FX space.

Key Quotes:

“Draghi escalated his rhetoric regarding future ECB action; recall that in his tenure, Draghi has more often than not surprised on the dovish side.

Draghi escalated his rhetoric regarding future ECB action.

The market took Draghi’s comments as a signal that the ECB take aggressive action when it meets on December 3. The euro was sold back to yesterday’s lows (~$1.0660) before a bid was found. Draghi said the ECB will “do what it must” to lift inflation as quick as possible.

He pushed back against ideas that with the core rate at a two-year high (1.1%), there was no need for such urgency. The central banks in Germany, Slovenia, and Estonia have argued against the need for new action. Draghi is still pushing forward. It is predicated on the staff cutting its growth and inflation forecasts.

In his tenure, Draghi has more often than not surprised the market with his dovishness. His comments today are important. Taken together, they suggest that Draghi is pushing the ECB toward broad based action. There are four moving parts: pace, …read more

Source:: FX Street