Yields on core European bonds went for a slide yesterday as prices rose in response to the ECB's decision to leave its QE programme unchanged – for now at least. Elsewhere, the USD continues to make gains on its peers.
Squawk / 21 July 2016 at 13:18 GMT
Head of FX Strategy / Saxo Bank
ECB press conference: expectations were very low coming into this ECB meeting, though there was some noise about the potential for technical measures to allow the ECB to continue to meet its bond buying targets and strong hints of something arriving in at the September ECB meeting. But Draghi delivered next to nothing, though there is the clear message that they are going to use their next batch of economic assessments to determine whether more measures are needed in September and also stated that risks to growth are tilted to the downside.

In the Q&A, Draghi seems quite determined to dodge sending any signals on the ECB's plans and has at least twice not answered the question.

The Euro tried to rally, but it is very clear that the Draghi will swing the bazooka into position if the economy slips between now and the September meeting. All in all, not much for the market to latch onto with this press conference.


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