Draghi Speech: EU should not compromise single market in Brexit

Following his introductory statement, Mario Draghi, President of the ECB and Chair of the European Systematic Risk Board (ESRB), responded to questions from members of the European Parliament, with key quotes, via Reuters, found below:

EU should not compromise single market in Brexit.

Next ESRB meeting will discuss safe bonds, ‘may or may not’ publish study.

No global agreement on risk weights, hard limit to sovereign bond holdings.

Key notes

EUR/USD: headed for a break of 1.1720 and eyes for 1.1310?.

EUR/USD is chipping away at the downside, driven by a turn in sentiment for the EZ on the back of political and dovish ECD commentary, now extending the losses from above the 1.18 handle. EUR/USD is trading at 1.1738, down -0.48% on the day, having posted a daily high at 1.1810 and low at 1.1722.

EUR/GBP: bears in control, in a reversal towards 55-W MA.

EUR/GBP is testing further to the downside and moving lower below bearish hourly SMAs. EUR/GBP is trading at 0.8869, down -0.62% on the day, having posted a daily high at 0.8930 and low at 0.8857.GBP is higher from Friday’s close and has been outperforming all of the G10 currencies with the exception of NZD on Monday, climbing for a fifth consecutive session while testing fresh multi-week highs at levels last seen in early November. Meanwhile, Draghi's tone today, as expected, is a reiteration of patience and persistence, anchoring the euro.

About Mario Draghi

The European Central Bank's president Mario Draghi was born in 1947 in Rome, Italy. Graduated of the Massachusetts Institute of Technology (MIT), Draghi became the president of the European Central Bank in 2011. As part of his job in the Governing Council he gives press conferences in the back of how the ECB observes the current European economy. President's comments may determine positive or negative the Euro's trend in the short-term. Usually, if he shows a hawkish outlook, that is seen as positive (or bullish) for the EUR, while a dovish is seen as negative (or bearish).