14 Mar 2014
Flash: Draghi calmed down EUR bulls - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, commented that Draghi's comments on Thursday hurt the EUR/USD ahead of the 1.40 handle.
Key Quotes
"Comments from ECB President Draghi yesterday afternoon caused the euro to retreat from recent highs as he acknowledged that the strong Euro was becoming increasingly relevant to the ECB’s assessment of price stability. Although he maintained the risks of deflation were ‘quite limited’ he made it clear the ECB stood ready to act with further easing measures, to combat this threat."
"Draghi then went on to say he expected the interest rate differential to widen between the Euro area and other developed economies implying either further Euro area easing or low rates for longer than other regions. Draghi’s comments came as EURUSD approached the important 1.4000 level, but after they were circulated EURUSD swiftly fell by half a percent."
Key Quotes
"Comments from ECB President Draghi yesterday afternoon caused the euro to retreat from recent highs as he acknowledged that the strong Euro was becoming increasingly relevant to the ECB’s assessment of price stability. Although he maintained the risks of deflation were ‘quite limited’ he made it clear the ECB stood ready to act with further easing measures, to combat this threat."
"Draghi then went on to say he expected the interest rate differential to widen between the Euro area and other developed economies implying either further Euro area easing or low rates for longer than other regions. Draghi’s comments came as EURUSD approached the important 1.4000 level, but after they were circulated EURUSD swiftly fell by half a percent."