A Confident Mario Draghi, No Wonder

Mario Draghi looked very confident when speaking in Frankfurt this morning. QE look to be working when EUR/USD is down to 1.0600 (at the time of writing) – down almost 3% on the week the program started and 24% from 10 months ago when the ECB started taking some actions. With 10 year Euro area sovereigns down to 1.7% for Portugal, 1.2% for Italy and below 0.25% for Germany – well – then he likely has obtained more of a market effect than he could hope for.

Within an economy as open as the one for the Euro area, the region is in for a nice and broad-based economic recovery from this. So will also inflation – and likely quicker and more forceful than what has been assumed so far. I guess the Euro area QE program will end before September 2016.

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