Another dovish masterstroke from Draghi helped the Euro fall to the lowest since the end of August 2012.

We know that the ECB beavers are working on other tools but he’s rephrased it to sound like there’s armies of people working on new measures that the market has taken to expect to be unleashed sooner rather than later.

He’s also stamped down his leadership by mentioning “unanimous” a hundred times as if it means that there isn’t trouble in the halls of power and the euro has taken that to mean there’s no risk to the QE that we haven’t even got yet. He wasn’t his usual calm and collected self and went out on a limb to explain the Reuters rumours while picking pointing the finger at on of the reporters behind the story. His feathers have been ruffled I’m sure. It’s all become worse than an Aussie soap opera and he’ll hope that it has been put to bed now.

Anyway, we went south by over 100 pips than where we started off from which should start to add something to inflation now shouldn’t it? I mean, if every 10% rise in the euro cuts 0.4% – 0.5% from inflation we should see the current rate double as we’ve lost 11.4% from the 1.3993 high to here.

The ECB is no nearer or no further to new tools hitting the streets but the threat is there and will keep the market on its toes.

“Sell d’em rallies” is still the cry.

Don't mess with the Mario

Don’t mess with the Mario