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After the ECB left the rates unchanged, Mario Draghi faces the press. Many analysts expect him to drop a hint about more monetary easing in December, when the ECB publishes more forecasts.

Analysis: Draghi’s 5 blows to EUR/USD

Follow a live coverage of the event below.

Here are some  key notes:

  • EUR/USD begins the event stable in the lower range: 1.13 to 1.1340.
  • The meeting is in Malta this time
  • Re-assessment of QE in December
  • EUR/USD crashes to 1.1240
  • In the meantime, US data beats with jobless claims at  259K and continuing claims at 2.17 million.
  • GDP expected to continue growing.
  • Weaker than expected foreign demand.
  • Domestic demand should be supported by the ECB action.
  • Risks are to the downside due to emerging markets.
  • Increased uncertainty has recently manifested itself and this risks the euro area demand
  • Inflation is low
  • Annual HICP inflation rates to remain low because oil
  • Base effects related to oil fall in late 2014 to push inflation higher.
  • 2016 and 2017 to see higher inflation because of economic improvement
  • EUR/USD low so far is 1.1227.
  • Draghi also calls on governments to do more, have their share.
  • EUR/USD loses 1.12
  • Draghi says they discussed a cut in the deposit rate
  • Draghi also used the word “vigilant” that Trichet used before rate hikes. The market sees that as a hint to cutting rates in December.
  • EUR/USD reaches a new low of 1.1182.
  • Draghi is using all his skills to hurt the euro without firing one shot.
  • EUR/USD low so far has been 1.1177.
  • The ECB expressed worries about the exchange rates
  • And they are worried about a deflationary spiral.
  • Oil prices can  turn into inflation expectations and then into  a deflationary spiral
  • Draghi wants governments to do more: infrastructure spending and not only structural reforms.
  • Press conference ends

EURUSD falling hard on Vigilant Draghi October 22 2015