Mario Draghi tried. He really did. But the market would just not buy his dovish talk. The fact of the matter is that the Eurozone recovery is in full bloom and the ECB is definitely heading for a taper as it tries to normalize monetary policy after years of extraordinary measures.
Meanwhile, on this side of the Atlantic, attempts by the Fed to reassure the market that further rate hikes are coming look increasingly dubious as US data continues to disappoint. The odds of another rate hike by the end of the year have fallen below 50% and today’s weak Philly Fed numbers did not help matters.
Tomorrow the econ calendar is barren, but euro bulls having broken through the key 1.1600 level are emboldened to challenged the multi month highs at 1.1719