Draghi starts the presser

  • Expects rates to remain at present or lower levels for an extended period
  • Downside risks have increased again
  • Inflation weaker than expected due to external risks
  • Necessary to review and consider mon pol stance in March, when new projections are published
  • Need to continue work to make sure that technical conditions are in place to make use of full range of policy tools

That's the bomb drop right there

  • Survey indicators point to ongoing GDP growth momentum in Q4
  • Expects recovery to proceed
  • Policy measures should continue to support domestic demand
  • Low oil prices support household consumption
  • Fiscal stance in EZ becoming slightly expansionary
  • Inflation expected to remain a very low or negative in 2016
  • Risk of second round effects should be closely monitored

EURUSD was slammed down to 1.0780 but is back a handful above 1.0800

  • ECB policy has improved borrowing conditions
  • Decisive action is needed from other policy areas
  • Structural reforms needed to help cyclical recovery

Now into his usual bluster about structural reforms