Mario Draghi´s rhetoric from day one at the helm of the ECB has always been dovish, at first cautious, but then he showed his true colors in that famous 2012 speech in London, “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.”
Photo by Max Langelott.
From then to now Draghi went all in on the dovish side, even going where no one would even dare a decade ago, buying private debt. But apparently he is not over, even if his mandate is close to the end. Today he kind of surprised the market by reinforcing the message that the ECB stands ready to act, either with lower rates or another wave of Quantitative Easing. A promise that sent the Euro/Dollar lower to the $1.12 level and that could limit any room for gains, the Euro-area currency had in the wake of the new FED dovish stance.