The ECB has effectively implemented a taper…although Draghi won’t call it that. It softened the blow with a kind of policy twist including a modest fall in short-term rates. The EUR resolved to the downside after the ECB meeting in what has become an increasingly volatile FX market response to these events. However, we presume this to be more related to political uncertainty in Europe since the no vote in the Italian referendum and PM Renzi resignation last weekend. The risk is building for EUR to break below its 1.05 support setting in train a deeper more persistent decline. AUD has so far held its ground since the ... (full story)