Draghi also reiterates the ECB ready to act
The euro tumbled below 1.1200 immediately after Draghi said a cut in the deposit rate was discussed at today's meeting and that the ECB is ready to act.
He earlier highlighted December as a key meeting. That's when the ECB updates its quarterly forecasts and he said that if 'projections change, we have to change'.
The euro is now down about 140 pips from pre-ECB levels to the lowest since Oct 5.
There is little on the chart to prevent further selling down to the Oct low of 1.1134 or the late-Sept lows just above 1.1100. I think that's where we're headed (and lower). Draghi was vague enough that it becomes very hard to fight the possibility of more easing.
