EURUSD is down over 120 pips this morning and accelerating as Mario Draghi drops all kinds of tapebombs in his Q&A with his Brussels overlords. Most crucially, slamming EURUSD 70 pips and breaking Wednesday lows, was his admission that while The ECB would “not buy” non-performing Italian bank loans, it would (confirmed by Italy’s Treasury) allow the busted deals as repo collateral (how close to par?) allowing Italian banks to kick the can just a little further.
Is EURUSD tumbling from this apparent “easing” or from the incredulity of Draghi’s hubris in destroying any semblance of ECB balance sheet strength? Or both?
- *DRAGHI SAYS QE IS FLEXIBLE ENOUGH TO ADAPT TO MARKET CHANGES
In other words, we will buy whatever is falling?
via Zero Hedge http://ift.tt/1QgXNx1 Tyler Durden