Draghi didn’t announce sovereign QE and didn’t pledge to announce it any time soon. That’s why the euro rallied to 1.2400 from 1.2300 but anyone holding euro longs needs to be careful (last at 1.2395).
The lack of QE is good news for the euro but it’s equally (if not more) negative for eurozone stock markets and bonds. For the economy as well.
So while the euro has popped as shorts got squeezed out (and that could continue), there isn’t much reason to stay long euros as money continues to flow from the eurozone to the US.
Italy MIB 3 day chart