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EUR/USD dips below 1.27 as Draghi talks

The president of the European Central Bank  reiterates his commitment to lift inflation back to normal levels.  Mario Draghi is speaking in the Brookings Institute in Washington.

EUR/USD was already below the highs, holding on to 1.27 towards  the speech. and is ticking below this level.

Indeed, EUR/USD was a sell opportunity after the FOMC

He also says that the ECB has acted aggressively. Does this mean that there is not much left to do? The moves of the euro are not that strong. But, the answer is: not exactly, he says that the measures (ABS, TLTRO, etc.) will have a sizable impact on the ECB’s balance sheet.

Yet again, he is pushing the ball towards the governments and calls them to do more. This is not new.

Basically he is repeating things we already know. But, we already know that the ECB is set to further loosen monetary policy. Even if the Fed moves slowly and with caution, it is moving to tighten monetary policy, while the ECB is moving to loosen monetary policy.

The pair moved by the dollar in the  past 24 hours: the FOMC minutes hit the dollar hard while the  good jobless claims report gave the greenback reasons to recover.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.