ZuluTrade Blog

Summary / impression from ECB meeting / Draghi press conference...

ZuluTrade News | Thursday, May 8, 2014 2:48 PM GMT

Today’s ECB meeting started with the normal statements we know from the last meetings:

 ·         Inflation is subdued

·         Interest rate will stay low or lower for an extend period of time

·         Unutilized capacity is sizeable

·         Inflation expectation is well anchored

 In a nutshell nothing serious new for the market driving eurusd up very close to 1.4000, but not able to break it.

The Q&A started slow but finally the market got some comments, which moved eurusd to new daily lows for now.

·         ECB-govering council is comfortable with acting next time, but before we want to see June projections!

·         There is consensus about being dissatisfied with the projected path of inflation!

·         Draghi reiterates that against the backdrop of low inflation and still a weak economy the EUR rise is cause for SERIOUS concern.


·         Mr. Draghi prepared the market for the next meeting - might raising expectation. So the focus will be on incoming EU data over the next month resulting in an increase of volatility.

·         EUR long position might be reviewed with the expectation of a more aggressive ECB compare to BoE, BoJ and FED in June….



 Tsaprounis Vasilis / Chief Economist













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