Despite Draghi's explanation that a QE program in Europe (due to the greater extent of bank lending vs capital market financing) would not be "as efficient" as the Fed's program, his comment that:
- *DRAGHI SAYS COUNCIL WILL REFLECT HARD ON DESIGN OF QE
Has provided just enough "hope" juice to drive the EUR lower and ramp bond and stock prices across Europe (for now). We will have to see what the half-life of this jawboning is. Of course, the EUR selling is USD buying and that is pumping USDJPY higher - and therefore a pre-open pump in US equities.
EUR slides...
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Bonds rip tighter in spreads...
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and Stocks pop...
Amazing... just so much "faith" that they know what they are doing...
of course, what matters to US equity markets is USDJPY and that's ripping (as EURJPY is unwound)...
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