Draghi says ECB is far from exit stimulus measures

FXstreet.com (San Francisco) - European Central Bank's president Mario Draghi has pointed in his recent speech that the ECB is far from point where they can have exit from stimulus measures in their mind. "Our monetary policy remains accommodative" added Draghi, who sees an inflation significantly lower than 2% next year.

Draghi also commented that the ECB principal commitment is to preserve price stability and credit flow: "We do not act to help banks. We do not act to help governments. We act to help maintain the flow of credit to real firms and households." The ECB is ready to act, paraphrasing the Draghi's so-called "whatever it takes", but "preserving price stability today requires different actions than it did in the past.

The eurozone is an unbreakable region and the Euro is a stable currency. "A euro is a euro regardless of where you are. A currency whose integrity is in doubt cannot be a stable currency." The president remarked that the European countries "should build a strong and deep economic and political union, to the benefit of all members of the single currency."

"Our common currency exists not as an end, but as a means: to foster peace between nations and to further our collective prosperity," pointed Draghi, however, he said that people in the pre-crisis times were living in "fairy world," thinking spreads reflected reality.

Nevertheless, Mario stated that the unemployment in Europe is a "tragedy"

The EUR/USD reacted down following the speech and specially with the words "far from exit" which send the pair 15 pips lower in a matter of minutes. Now the EUR/USD is trading below 1.3100 area.