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27 May 2014
Draghi sent out a nuanced message - RBS
FXStreet (Bali) - Greg Gibbs, FX Strategist at RBS, shares his view on the latest comments by ECB's Draghi, while outlining that current market conditions still support carry trades.
Key Quotes
"Markets are lacking clear direction and subject to short-term technical trading and position squeezes that are unlikely to result in significant breaks. In this vein we saw a rebound in the EUR and European assets on Monday.'
"Draghi sent out what I felt was a nuanced message – that the ECB is likely to ease policy next week, in line with expectations, justifying the recent lower range for the EUR but keeping in check the immediate risk of a deeper fall."
"Low vol and easy global conditions are tending to support currencies of higher-yielding and stronger stable-growth countries."
Key Quotes
"Markets are lacking clear direction and subject to short-term technical trading and position squeezes that are unlikely to result in significant breaks. In this vein we saw a rebound in the EUR and European assets on Monday.'
"Draghi sent out what I felt was a nuanced message – that the ECB is likely to ease policy next week, in line with expectations, justifying the recent lower range for the EUR but keeping in check the immediate risk of a deeper fall."
"Low vol and easy global conditions are tending to support currencies of higher-yielding and stronger stable-growth countries."