When Draghi speaks (or releases his statement), the algos obey.. and sell EURUSD. No new news at all – just a repeat of the same statements that “QE is deemed effective’ (by whom we ask), and a recalibration is in order (as the situation has changed since December). His biggest problem from what we can tell is the fact that the banking industry’s collapse augurs very badly for industrial production and an economic recession across Europe.
The headlines from Draghi’s prepared remarks…
- *ECB’S DRAGHI SAYS QE MEASURES DEEMED EFFECTIVE
- *DRAGHI SAYS ECB WILL REVIEW AND MAY RECONSIDER STANCE IN MARCH
- *DRAGHI SAYS ECB MONETARY POLICY IS WORKING
- *DRAGHI SAYS THERE ARE RISKS THAT COULD UNDERMINE RECOVERY PATH
- *DRAGHI: EMERGING MKTS EXPOSED TO ABRUPT SHIFT IN RISK SENTIMENT
- *DRAGHI SAYS ENSURING RESILIENCE OF EURO ECONOMY IS ‘PARAMOUNT’
And sure enough EURUSD tumbles…
Perhaps this is why Draghi is so worried – as it appears the Banking ‘Canary’ In Europe’s Economic ‘Coalmine’ Is Dying…
via Zero Hedge http://ift.tt/1PQ5xWw Tyler Durden