Euro Jumps On Draghi “Diminished Risks” Remark – Then Gives It All Back

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:

EUR

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”…

LOL

  • 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

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