Expectations were high heading into today’s ECB meeting that the Central Bank would issue some news detailing the start of another round of stimulus for the lagging Eurozone economy.
‘Twas not to be.
Draghi TALKED doing more stimulus at some point as he went through the same litany of things that he has been saying seemingly forever at this point: “Economic risks remain to the downside” “our projections suggest lower inflation” “we now see GDP growth at 1.0% versus 1.6% in September”
BLAH, BLAH, and more BLAH. The problem is, as far as the market is concerned, they did NOTHING! Just talk.
That is NOT what the market wanted to hear so guess what? Time to cover all those short Euro positions were loaded in this week in anticipation that they would do SOMETHING. Up went the Euro, now over 100 points and once again, the currency markets are roiled by another yapping Central Banker.
This post was published at Trader Dan Norcini on December 4, 2014.
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