Following the ubiquitous “no change” statement, ECB President Mario Draghi faces an uphill battle in today’s press conference to keep the QE-dream alive, reflect on EU’s potemkin-village-like economic strength, and jawbone the Euro lower – “everything’s awesome… but we’re gonna need more money-printing.”
EURUSD is at its highest since 2014…
And most market participants expect Draghi to say something to limit the euro’s strength during the press conference.
As Ned Rumpeltin, head of FX strategy at Toronto-Dominion Bank, notes, a question on Euro strength, dollar weakness is all but guaranteed…
“Back in September, the last time the euro was such a large topic of concern, 7 out of 21 members of the press corps asked about it in one way or another.”
If Draghi fails to at least address the Euro strength, Rumpeltin notes that…
“…he will be sending a strong signal that they are endorsing the euro’s rally and effectively green- lighting a further advance.”
Time to burn it up Mario…
Press Conference begins at 0830ET…
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