Draghi EU is “solid expansion phase”

Draghi EU is “solid expansion phase” – USDJPY was the biggest mover overnight followed Abe’s statement that will eliminate deflation, a mixed set of US  data releases yesterday, along with Fedspeak. The House passed its version of the tax reform bill, which now goes before the Senate then potentially comes back for reconciliation between the two bodies. Elsewhere today, Draghi admitted that the “robust recovery” means the economy “may be becoming more resilient to new shocks”, but stressed that “we still need a patient and persistent approach to monetary policy to ensure that medium-term price stability is achieved”. The ECB President argued that while “we see inflation moving steadily away from the very low levels of recent years”, “progress remains incomplete and partial”, although “as the labour market tightens and uncertainty falls, the relationship between slack and wage growth should begin reasserting itself”.