EUR Plunges After Draghi Highlights "Downside Risks", Downplays Inflation

Just as we warned was likely, Mario Draghi first remarks were dovish, highlighting the potential downside risks in the EU economy and suggest that inflation trends were not convincing.... in other words, the un-taper is on the cards. And  EURUSD reacted instantly...

  • *DRAGHI SEES NO CONVINCING UPWARD TREND IN UNDERLYING INFLATION
  • *DRAGHI SAYS UNDERLYING INFLATION PRESSURES REMAIN SUBDUED
  • *DRAGHI SAYS INFLATION PICKED UP DUE TO ENERGY
  • *DRAGHI SAYS RISKS TO ECONOMIC OUTLOOK REMAIN ON DOWNSIDE
  • *DRAGHI SAYS ECB HASN'T DISCUSSED REDUCING STIMULUS

And the result...

 

This has obviously sent the dollar index soaring to the highs of the day - how long until President Trump tweets?

And then there is this...

  • *DRAGHI SAYS G-20 PLEDGED TO REFRAIN FROM COMPETITIVE FX MOVES