Currency Analyst since 2010

Draghi's comments hurt EUR

EUR/USD hit $1.3129 before recovering to $1.3160 on the ECB’s Draghi’s comments.

-          Growth risks are to the downside, though there was hope of a more balanced view given the recent improvements in data.

-          Economic growth outlook is pessimistic. GDP in 2013 is still expected to contract (by 0.4% vs. 0.6% previously). The growth forecast for 2014 was revised down from +1.1% to +1.0%.

-          Recent developments (i.e. taper talk) could negatively affect economic conditions.

-          Rates will stay low for ‘extended period’.

-          The ECB actually discussed a rate cut.

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