Draghi speech: We don't see any systemic danger from bubbles

Eren Sengezer FXStreet

Mario Draghi, President of the ECB, is responding to questions from the press, with key headlines, via Reuters, found below:

Reinvestment programme will become more and more sizable
Deviations from capital key are deviations
Deviations from capital key are temporary
Financial stability risk from ultra easy policy is danger
We don't see any systemic danger from bubbles
Prime commercial real estate is only area of stretched valuations
Despite stretched valuations in some markets, don't see increase in leverage

Key notes:

EUR/USD through 1.2000 on Draghi’s presser

The sentiment around the single currency remains positive so far today, with EUR/USD testing daily highs above 1.2000 the figure.

EUR/GBP hits two-week lows and quickly recovers to fresh session tops

As the ECB presser got underway, the EUR/GBP cross refreshed two-week lows but quickly rebounded back to hits fresh session high level near the 0.9175-80 region.

ECB's press conference

Following the ECB´s economic policy decision, the ECB President gives a press conference regarding monetary policy. His comments may influence the volatility of EUR and determine a short-term positive or negative trend. His hawkish view is considered as positive, or bullish for the EUR, whereas his dovish view is considered as negative, or bearish.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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