Oil Slump Teaches Draghi a Tough Lesson

For nearly an hour on Thursday afternoon it was all going so well.

The European Central Bank (ECB) announced a better-than-expected range of stimulus measures aimed at rescuing a fragile recovery in the region and pumping inflation back up to desired levels. Asset markets cheered the news, with financial stocks leading the charge higher as the euro slipped lower on the anticipation of extra liquidity.

But the rally faded in the same amount of time that it took to start. The pan-European Stoxx 600 index finished the day 1.7 percent lower after being up over 2 percent at one stage in the afternoon.


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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.