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Once again, Draghi  said that the  exchange rate of the currency is an increasingly important factor in policy. He also says that the interest rate corridor could be tightened.  the president of the ECB also says that any worsening of the inflation outlook could lead to QE.

EUR/USD is lower but after the initial slide, it is recovering. — more coming

It is important to note that implementing QE in the euro-zone is quite complicated with its 18 member states, to say the least.

More:  Euro-zone QE: How about buying Gold?

This is not the first time Draghi said this. In a weekend interview around two weeks ago,  he made the same remark and triggered a Sunday gap for the common currency. He is basically repeating the  same stance in his current speech in Amsterdam.

EUR/USD earlier enjoyed a  strong IFO business climate figure and rose above 1.3840. Draghi sends it down to 1.3815.  Good news also came from Spain, which had a record low yield  in its 10 year bond auction: only 3.059%. Spain can certainly thank Draghi for this: the OMT backstop is working perfectly well as a bazooka.

After the initial slide, EUR/USD stabilizes. The markets might be getting tired from hearing what the ECB can do and are waiting for real action.

1.38 provides support and Draghi didn’t even manage to send the pair closer to this number. Action is needed. 1.3740 provides further support.  Weak resistance is at 1.3830.

For more, see the EURUSD prediction.