The ECB story is very big news and the market doesn’t know how to handle it right now.
Any stories that talk about challenging Draghi’s leadership is going to be big. At the moment this one is more murmurings of discontent than an impending coup but it’s still going to undermine Draghi and the ECB.
At the moment the market is seeing it as nothing more than the possibility of not getting the expected policy responses from the ECB but if this story gathers pace then we could be in for trouble.
We’ll keep an ear out as this may be something Draghi or other ECB members may want to quash and quash quickly.
If we do get further news on discontent the euro is more likely to tank on the negativity than rise on the fact we might not get a bit of QE or that the ABS will stop.
