Bottom line: Draghi promises more of the same while refusing to answer the “explain why more inflation is good for citizens” question.
The EURUSD is selling off and might just reach the bottom of the rising channel established several days after the actual PSPP announcement back in March.This might normally be detrimental to stocks… …but for the fact that the USDJPY has been dramatically ramped back to and above the critical .618 Fib at 120.11. So, ignore the EURUSD and keep an eye on USDJPY. As usual, it’s all that matters as long as the yen carry trade is alive and well.
If you’re hip to the yen carry trade, you’ve seen this drill before. But, if you’re like most investors out there, you’ll see that Draghi spoke and the “market” rose and assume that whatever this asswipe said must be good for the “economy.”
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