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  • Draghi: Considerable Degree of Stimulus Still Needed

Added at 4:12am

  • Accompanying the economic recovery

    From ecb.europa.eu

    For many years after the financial crisis, economic performance was lacklustre across advanced economies. Now, the global recovery is firming and broadening. A key issue facing policymakers is ensuring that this nascent growth becomes sustainable. Dynamic investment that drives stronger productivity growth is crucial for that – and in turn for the eventual normalisation of monetary policy. Investment and productivity growth together can unleash a virtuous circle, so that strong growth becomes durable and self-sustaining and, ultimately, is no longer dependent on a sizeable monetary policy stimulus. The discussions ... (full story)

and the EUR is gaining value thanks to that....
Yesterday Draghi speech Drag to fall the Euro,but today speech most hope for Euro to raise ?
WOW..welcome back to 2015
ahahaha, Dragi is fooling us.
This is odd, wouldn't stimulus suggest more printing ie lower eur?
Draghi can't keep the euro down for much longer, its just way too undervalued relative to the US dollar.
"Where you want to be is always in control, never wishing, always trading.
  •  Guest
  • | IP XX.XXX.99.186
Read carefully: "Now, we can be confident that our policy is working and that those risks have abated. The threat of deflation is gone and reflationary forces are at play. And since one of the drivers of inflation today is positive supply developments, this should feed back positively into potential output rather than produce hysteresis. In these conditions, we can be more assured about the return of inflation to our objective than we were a few years ago.
"
It's all about how many times he says "however". If the number is odd, the EUR goes down...
it's just consider thing? when he execute?
IF 27
booooomba thats what the market is about it goes the way they want
eur/usd back to 1.30, long term
  •  Guest
  • | IP XXX.XXX.39.152
Thank you draghi for the trap. When everybody sell euro yesterday, now you make euro flying high. Thank god, i don't believe what draghi's word yesterday.
Big money just wait for some stupid event in the opposite direction and they enter
Patience . This is only temporary , dollar will be gaining strength as FOMC approaches.
Can anyone explain me why EURO is goin' so good? I didn't see and read nothing special in his speech.
Maybe i saw negative sides on it.
  •  Guest
  • | IP XXX.XXX.190.17
This is what we call Market manipulation.
"Considerable Degree of Stimulus Still Needed" and yet we continue to see the 2yr Bund Yield squeeze its way higher, Dragging the 10yr along with it.
Quoting Caffinated
It's all about how many times he says "however". If the number is odd, the EUR goes down...
Nevertheless, we are still in a situation of continuing slack, and where a long period of subpar inflation translates into a slower return of inflation to our objective. Inflation dynamics are not yet durable and self-sustaining. So our monetary policy needs to be persistent.
This is why the Governing Council has repeatedly emphasised that a very substantial degree of monetary accommodation is still needed for underlying inflation pressures to build up, and to support headline inflation in the medium term. This is reflected in our forward guidance on net asset purchases and interest rates, as well as our decision to reinvest the principal payments received under the APP for as long as necessary.

The first is confidence that monetary policy is effective and the transmission process will work. All the signs now point to a strengthening and broadening recovery in the euro area. Deflationary forces have been replaced by reflationary ones.
While there are still factors that are weighing on the path of inflation, at present they are mainly temporary factors that typically the central bank can look through. However, a considerable degree of monetary accommodation is still needed for inflation dynamics to become durable and self-sustaining. So for us to be assured about the return of inflation to our objective, we need persistence in our monetary policy.

----------------

So again, why the EURO is up and why is this good news for EURO ?!! :-D
its risk appetite. things are good = sell dollar. The fact that rates are rising in the US and Draghi indicates an improved outlook means sell safe haven USD for risk assets like shares. commodities and other currencies as needed for those investments. So Euro appreciates against USD even though the US is tightening and europe is no where near that
Quoting DemoGuru
{quote} Nevertheless, we are still in a situation of continuing slack, and where a long period of subpar inflation translates into a slower return of inflation to our objective. Inflation dynamics are not yet durable and self-sustaining. So our monetary policy needs to be persistent. This is why the Governing Council has repeatedly emphasised that a very substantial degree of monetary accommodation is still needed for underlying inflation pressures to build up, and to support headline inflation in the medium term. This is reflected in our forward...

He was steppin on the brakes for years. So you have to read between the lines to spot marginal changes in his rhetoric way telling the same things over and over again. A
As the quotes reflect future implications, a slight shift in tone is enough to cause such spiking moves. Everybody is waiting for him to release the brakes, that is why the market is nervous and sensitive to every kind of rhetorical change.
Dont be a fool guys , draghi is tricking market euro will not go v to 1.20 - dollar bulls remain profitable
hehehehehehehehhehehehe. Like I wrote in my comment yesterday when he was talking about rate cut... "when they give clear signal to sell BUY full Lot".
Always news trading killed wiped my accounts lol news trading is like tossing coin you must go up or down complete on fate .
Quoting Thor33
Always news trading killed wiped my accounts lol news trading is like tossing coin you must go up or down complete on fate .
NO Trading on NEWS Bro
Wow look at the EUR/USD daily chart. Looks promising.
Invest in alarm clocks
Quoting caffinated
it's all about how many times he says "however". If the number is odd, the eur goes down...
and you counted that?
agree.
no "perfect-enough country", without issuing "government bonds and funds".
Quoting Tony112
Wow look at the EUR/USD daily chart. Looks promising.
Wow look at the EUR/jpy daily chart. This one Looks more promising.
Draghi is a disgrace! what change since yesterday? wonder if his family members are making a fortune inside trading...
Quoting abelfxtrader
Draghi is a disgrace! what change since yesterday? wonder if his family members are making a fortune inside trading...
The Only thing that matter in the markets is order-flow. Try asking yourself -

Who is on the other side of my trade?
or
Who is more likely to profit if I take this trade here?

I don't think the answer will come out to 'Draghi's Family'...
and the euro rising LOL , thanks to market makers and big gamblers , and thanks also to beginners who use very tight stop loses , because from what draghi said yesterday and today , the euro will fall , also technically will fall btw .
Quoting zerotmoal
and the euro rising LOL , thanks to market makers and big gamblers , and thanks also to beginners who use very tight stop loses , because from what draghi said yesterday and today , the euro will fall , also technically will fall btw .
[email protected] Zero, I hope so.. Ive misread timing of this move.. and though happily only just moved short.. Im concerned about the momentum of the move. Hope Im not fading in to the path of a charging bull.. LoL

EDIT: 18.30CET --- Well the rush has run out of puff for now.. and my book squared...
..shape of pullback suggests possibility wve not mistaken timing here.. or could simply be retest breakout level?
Time of day etc??
Ive reduced risk at no loss.. and staying with reduced risk till I see if this is a failed /dummy push or if its got legs.
Quoting cliffedwards
{quote} [email protected] Zero, I hope so.. Ive misread timing of this move.. and though happily only just moved short.. Im concerned about the momentum of the move. Hope Im not fading in to the path of a charging bull.. LoL EDIT: 18.30CET --- Well the rush has run out of puff for now.. and my book squared... ..shape of pullback suggests possibility wve not mistaken timing here.. or could simply be retest breakout level? Time of day etc?? Ive reduced risk at no loss.. and staying with reduced risk till I see if this is a failed /dummy push or if its got legs....
it's always the game of risk management , and in such situations volumes adjustment and tight risk management should be , to avoid market crisis and such high volatility , we saw this irrational market behavior many times before until the next day after we all close in loses the market go in our favor , my point is we should know when to close on a lose , and when to wait .
Quoting gvsee
Can anyone explain me why EURO is goin' so good? I didn't see and read nothing special in his speech. Maybe i saw negative sides on it.
Because of expectation of higher interest rate. They'll sell public bonds. It will reduce the supply on the market for loanable funds (they'll get money for selled bonds). It will reduce net capital outflow. It will reduce the supply on the market for foreign-currency exchange. EUR will be a bit more rare And now people want EUR (increase demand) because it will be more expensive later when ECB will sell bonds how Draghi said.
why do they want inflation everyone's on about inflation returning to normal, inflation sucks prices going up by 2-3% every year is awful especially if you don't get a pay rise of 2-3% per year, so inflation is terrible unless you own everything then every year your worth 2-3% more minus the pay rises your giving out.
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