Well, the single currency may have knee-jerked lower an hour ago as the ECB kept everything unchanged in a seemingly dovish concession despite a more benign political outlook, but it’s now moving meaningfully higher:
This looks pretty clearly like a reaction to this headlines from the Draghi presser:
- DRAGHI SAYS DOWNSIDE RISKS TO ECONOMY HAVE FURTHER DIMINISHED
- DRAGHI SAYS RISKS MOVE CLOSER TO BEING BROADLY BALANCED
- Data since meeting in early March confirm that cyclical recovery of the euro-area is becoming “increasingly solid
- EUR FRESH HIGH AS DRAGHI SEES DOWNSIDE RISKS DIMINISHED
“And like that, it’s gone”…
- Some members had a more “sanguine” view of the economic situation, while others believed that such improvements wouldn’t “warrant” change in communication on balance of risks
- No “really” different views on inflation
- Wage growth remains uncertain
- Says assessment of four inflation criteria hasn’t changed
draghi really fucking with euro right now
— Heisenberg Report (@heisenbergrpt) April 27, 2017
