Todays European Central Bank announcement marks the very last “Central Bank risk event” on the calendar for 2014, as the world awaits even more easing / asset purchases from yet another of our favorite Central Banks.
The Euro has been beaten down for weeks leading up to the announcement this morning, with general market expectations “on high” – assuming Draghi will do what he’s been told to do, stay extremely dovish and give the market what it wants.
Unfortunately……The ECB has a much more difficult task than most CB’s in representing an 18 member group of countries as opposed to only one ( in the case of Japan or The U.S ) so I can only assume that we get “more of the same” from Draghi here today ie…….alot of talk ( which has been working well enough ) but very little action.
The “shared currency experiment” certainly has it’s drawbacks as it’s nearly impossible to keep everybody happy with countries such as Germany generally “towing the line” while Spain, Portugal, Italy etc continue to drift into the economic abyss.
One could assume that whatever the immediate reaction to Draghi’s statement is, this will likely put a floor under the Euro as there will be nothing more to expect until the first quarter of 2015.