FR: Euro makes a roundtrip, what we leaned from Draghi
Going into the ECB press conference, there was speculation the ECB would try to tweak bond buying rules because it's running out of bonds to buy. However, they punted on that decision and Draghi said it wasn't even discussed.
Instead, he accosted governments and told them to do more. The inaction sent the euro up to a session high of 1.1060.
Later, he emphasized that the ECB remained ready to act and he talked extensively about rules that would allow governments to use public money to back bad bank loans. As he did that, the euro sagged back down to 1.1010, which is back to where it was before he started.
Unless your trading European bank shares, there isn't much to take away from this meeting. Draghi said he wants to see new forecasts. We'll also have to wait and see how the ECB aims to solve the bond buying problem.
