ECB: Mario strikes again | Forex Factory

  • ECB: Mario strikes again

    From think.ing.com

    After Benoît Coeuré's rather dovish interview with the Financial Times, suggesting that “at some point during our next few meetings, we might very well be facing a situation where risks have materialized”, ECB president Mario Draghi went one step further with his speech in Sintra today There should more no more doubts about the ECB’s determination to act. In fact, the major question is no longer what it would take the ECB to cut rates but rather what it would take the ECB not to cut rates. Next steps could follow as soon as at the July meeting. In Draghi’s Sintra speech, the economic assessment was a bit ... (full story)

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Replicant
Jun 18, 2019 7:35pm
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Current rates differential between EUR and USD is 2.25% to 2.50%.

FA wise & ceteris paribus in EUR :

=> a 50bp cut in the US in 2019 will unlock FA level 1.161x in EURUSD

=> a 75bp cut will unlock FA level 1.191x

(tip : just check monthly closes and rates differential history)

That explains a lot why MD felt it was the right time to make that speech (and that confirmed indirectly what's cooking behind the scenes on FED's side).
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