Acknowledging the economic success of the eurozone while holding back the rally of common currency – a problem that is increasingly becoming unsolvable for the ECB.
The ECB’s activity on the debt market will decrease from 60 billion Euros to 30 billion in January. The possibility of a further reduction of the bond buying program might be considered.
Despite the EBC October meeting being the main denominator whether the politics will be curtailed or not, Draghi tries to dismiss the importance of the event.
On Wednesday, Trump presented a bill in which he proposed significant tax breaks for both individuals and legal entities. The reform implies a reduction in income and corporate taxes, as well as the abolition of certain tax benefits.
The need for new solutions and fresh ideas will push Draghi towards radical changes. Including the reduction of the bonds purchases.
The common currency jumped more than one percent after Draghi’s speech at the ECB forum, which strengthened some expectations.
The Dollar flatlines and there is no positive data in sight. Meanwhile, Carney pointed out a strong underlying momentum of the EU economy.