Yet another dry, somewhat lacklustre and wholly uninspiring monetary policy press conference from the European Central Bank’s President Draghi. Eurgh!
During yet another round of disappointment to the long-term normalisation of European monetary policy, Draghi announced that rate setters acknowledged downside risks are growing, with the outlook for short run economic growth drifting lower. Draghi maintained optimism over the medium run that allowed him to reiterate the dreary and uncompromising forecast to keep incumbent monetary policy conditions intact at least through the summer of 2019.
Investors were not impressed by Draghi’s statement, selling the Euro in droves and forcing EURUSD well below its 1.14 upper bound, falling to an intraday low of 1.1306. The market still does not price in even a 10-basis point hike in 2019, showing its disdain for Draghi’s central bank. Immediately, the central bank does not anticipate a recession as its base case scenario. However, during the press conference that followed this afternoon’s event, super Mario did suggest that liquidity (read interest rates) will remain plentiful (read low) throughout the next decade.
The Pound traded within a tight rate today, flirting with the 1.15 level against a more turbulent Euro. Market remain in the lurch awaiting further news on Brexit ahead of Tuesday’s vote
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – No rush
Charles Porter
Tue 31 Mar 2026
No rush The President’s claims of an imminent end to the war are being undermined by Iran’s refutation that such talks have occurred. Trump in turn has continued to extend and extend a deadline for Iran to come to the negotiating table only to be scorned by news outlets in Iran, presumed to speak on […]
Daily Brief – Questioning Truth
Charles Porter
Tue 24 Mar 2026
Questioning Truth Adopting the same handle as his now rather redundant X account, @realDonaldTrump shocked markets yesterday using his own social media platform, Truth Social. During Trump 1.0, the legitimacy of a President using an unofficial X, then Twitter, account was questioned. Now under Trump 2.0, it’s seldom questioned when he is the majority shareholder […]
Daily Brief – On course for Warsh?
Charles Porter
Thu 19 Mar 2026
On course for Warsh? The latest Federal Reserve decision concluded last night. Mirroring the prior decision, the FOMC voted to keep policy rates on hold within a band of 3.5-3.75%. Ordinarily, yesterday’s meeting could have been a lesser-event. After all, with the arrival of Chair Jay Powell’s successor on May 15th, this could have been […]
