My question is, what the hell was Draghi talking about last week?

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The market came to the very logical conclusion after Mr. Draghi testified before the EU Parliament last week that if the EU did its part to get its fiscal house in order the ECB would do its part from a financial perspective. Perhaps we read too much into the comments, but they seemed quite straight forward.

Makes you wonder why the Germanic shift in the last week. Some would say “they” got to him, they being the Germans…We may never know…

What we do know is that the ECB will be part of a quick-fix for the euro zone making any recovery that much more difficult.


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Jamie Coleman


  1. Depression is the way..

  2. Someone’s sitting on his own at tonights Euro dinner. ;-)

  3. Perhaps his tough attitude now is meant to put pressure on governments to agree to tough fiscal rules at the summit, something they are currently reluctant to do.
    This could be a means of pressure.

  4. I the jury is still out on how much influence he will have.

  5. Re-reading that speech, it is not obvious that he meant increased bond buying. The emphasis was on the ‘Fiscal Compact’ and sequencing. So the market got ahead of itself. The ECB can’t / won’t act UNLESS and AFTER the politicos have given firm commitments regarding the fiscal compact.

  6. He just wanted to get invited to dinner tonight:)

  7. “Should not try to get around the spirit of the Treaty not to finance governments.”

    If this is really meant, then there’s no rabitt left to pull out of the hat, because any “rabbit” would just be a diferent way to achieve the same: ECB financing governments.

  8. Well…that’s all folks from EZ common currency strength – dollar prevails … once again. IF any improvement in current situation will even happen, it may happen but IMO only after weekend when all talks, rumors and agreements will come out to the daylight. Now we will probably test 1.33 and then only God knows. Instead of calming markets Draghi did sth totally contrary. I guess I liked Trichet more despite his mysteriousness.
    I would place next support at 1.3300 and then at 1.3285. After that 1.3150. If we bounce resistance would be 1.3350 and 1.3400 – 200 DMA.
    Strangely no one likes pound anymore. Even support at 1.5650 did not hold for long.

  9. agree with you Yohay. Draghi is twisting the Fin Mins’ arms to force them to make meaningful progress. Also fits in with his emphasis on sequencing in the speech last week and today’s conference as well.

  10. He had been clear on that all along. Trading on hope may actually have been quite presumptious?

  11. the market read what it wanted to read and… was wrong(as per usual).

    What has fiscal union to do with printing?

  12. Jamie,
    What is tommorow’s schedule? When is the big meeting taking place and when can we expect a final statement, press conference, etc.?
    Thank you!

  13. evening GMT 17:00 and 17:30 will be some announcement..


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