Draghi speech: Labor market slack turned out to be bigger than estimated

Mario Draghi, President of the ECB, is responding to questions from the press, with key headlines, via Reuters, found below:

• No comments on FX levels
• Will not ‘experiment’ with rate forecasts
• Labor market slack turned out to be bigger than estimated
• Nominal wages are also lagging behind despite strong recovery environment
• Need confidence, patience, persistence
• Shouldn't lose confidence in monetary policy

Key notes:

EUR/USD through 1.2000 on Draghi’s presser

The sentiment around the single currency remains positive so far today, with EUR/USD testing daily highs above 1.2000 the figure.

EUR/JPY hits fresh weekly highs, around 131.00 handle on Draghi’s comments

The EUR/JPY cross reversed a knee-jerk dip below the key 130.00 psychological mark and surged to fresh weekly tops, closer to the 131.00 handle. 

ECB's press conference

Following the ECB´s economic policy decision, the ECB President gives a press conference regarding monetary policy. His comments may influence the volatility of EUR and determine a short-term positive or negative trend. His hawkish view is considered as positive, or bullish for the EUR, whereas his dovish view is considered as negative, or bearish.