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Weekly preview - Draghi's tough balancing act
Risk conditions will continue to dominate and sentiment strongly influenced by Thursday's ECB press conference. There will certainly be ECB concerns over fresh downside inflation risks, but too negative a stance from President Draghi would add fuel to risk aversion and tend to trigger a further unwinding of short Euro positions, both counter-productive. Draghi, overall, will want to give the impression that global central banks are in control and he is likely to be more optimistic on demand-side factors while still hinting that further action could be taken if required. In this context, the Euro is liable to gain ... (full story)