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