Once again, Mario Draghi is a bit of a downer. His remarks yesterday at the Brookings Institution are dragging on the euro, since they indicate that the ECB is ready to double-down on stimulus measures likely to weigh on the 18-nation currency.
Yesterday, ECB President Mario Draghi spoke at the Brookings Institution about what’s next for the euro and the eurozone. He is mentioned that the ECB remains committed to helping to stimulate the flagging eurozone economy, and that it would do whatever is necessary to make that happen — no matter what the balance sheet looks like in the end.
Draghi also predicted that the eurozone would be in a place that the ECB could start increasing interest rates in 2017. It’s no surprise that Goldman Sachs lowered its forecasted rate for the EUR/USD, and that the euro is heading lower against the US dollar today.
There isn’t a whole lot left for policymakers in the eurozone to try, and their last, best hope is to use the 18-nation currency as a kind of lever to try to get the economy moving again.
At 10:22 GMT EUR/USD is down to 1.2664 from the open at 1.2711. EUR/GBP is up to 0.7890 from the open at 0.7879. EUR/JPY is down to 136.37 from the open at 136.93.
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