Hawkish Draghi

On currency markets the euro extended gains against the dollar after European Central Bank boss Mario Draghi said the EU was enjoying a newfound confidence that could unlock demand and investment.

And while he cautioned against winding down the bank’s easy money policy, analysts said the Italian was more hawkish than expected.

Stephen Innes, senior trader at OANDA, said in a note: “An emphatically hawkish Mario Draghi suggests the ECB policy is on track while all but declaring victory over the eurozone inflation conundrum. Apparently, the ECB has taken a giant leap towards ending (its) ultra-loose monetary policy.”

The euro surged more than one percent above $1.13 and on Wednesday it pushed to highs not seen since August.

The greenback was also down against the pound on concerns about Trump’s agenda. It also dropped versus the yen although it held above 112 yen after top Federal Reserve officials indicated interest rates would rise further this year.

Oil prices were flat after jumping around two percent Tuesday as the commodity bounces back from sharp losses that saw it hit a 10-month low.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes