Draghi starts presser
- QE is intended to run until Sep 2016 or beyond if necessary
- QE will run until ECB sees sustained adjustment in the path of inflation
- Says there are still concerns over emerging markets
Doesn't get more dovish than that and a big indication that the ECB are ready to do more
EURUSD ducked to 1.1228, bounced to 1.1255 and now trades at 1.1238. We may not get a secondary move until the Q&A but be ready for the price to whip around
- Recovery to continue albeit dampened by weak foreign demand
- Growth likely to be dampened by balance sheet adjustment and sluggish structural reforms
- Increased uncertainty has manifested in financial markets
- Downside risks have emerged for growth and inflation outlook.
