The rise in the euro during the ECB’s press conference last week apparently reflected disappointment that President Draghi did not provide more explicit signals that quantitative easing (QE) is coming. But we don’t think he could have been much more explicit.
Nonetheless, the market reaction provided a timely warning to Mr Draghi and colleagues that they must not disappoint on the scale of QE if they are to sustain or extend the currency’s depreciation and maximise the programme’s effectiveness.
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