Draghi weakens Euro with Uber Dovish comments - Danske Bank

FXStreet (Barcelona) - Kasper Kirkegaard, Chief Analyst at Danske Bank comments that despite no action from the ECB, President Draghi managed to weaken the euro yesterday as he sounded more dovish than usual and opened the door for the use of quantitative easing.

Key Quotes

“Given that our inflation forecast is still well below the ECB forecast, we are now more certain that the ECB will eventually have to ease further. It also means that the peak in EUR/USD in this cycle might now be behind us.”

“The labour market report today might once again underline that monetary policy between the eurozone and the US is on a divergent path. Hence, a new move lower in EUR/USD is likely.”