Draghi in European Parliament
- Economic expansion is broad based
- Monetary policy will evolve in a fully time consistent and data dependent manner
- We can be more confident about the path of inflation
- ...but patience and persistence in regards to mon pol is still warranted
- There is no evidence of systemic credit-fuelled bubbles
Upbeat stuff but it's not giving a lift to the euro. We've heard these kinds of comments from Draghi before and the market is now at a point where it wants something more-concrete on what's coming next.
More:
- Sees new headwinds from the recent volatility in FX rate
This has sent the euro a bit lower it also highlights a pet peeve of mine. Draghi and everyone in Europe jumped on Mnunchin for saying some obvious things about short-term benefits to exports for a euro dollar. But here is Draghi jawboning on a weak euro because he says 'volatility' instead of 'strength' but everyone knows he means 'strength' so what he's doing is really worse than Mnuchin... it's just Mnunchin doesn't know the rules of the game.
