- Euro slumped and stocks surged after ECB President Mario Draghi said that “if the crisis has shown anything, it is that we will use all the flexibility within our mandate to fulfil our mandate — and we will do so again to answer any challenges to price stability in the future.”
- Interestingly, safe haven yen has remained the strongest despite the stock market rally
- Draghi’s dovish remarks came as more evidence of investor anxiety emerged: German ZEW Economic Sentiment dropped to -21.1 from -2.1 the month before, easily missing expectations of -5.7.
- Investors will be turning their attention to this week’s main event: the Federal Reserve’s rate decision on Wednesday. Ahead of that, we could see some profit-taking after this morning’s outsized moves.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.