That is how he summed up the monetary policy stance during his press conference today. Draghi’s dovish persona was on full display again, saying that the information available since the March meeting confirms “slower growth momentum extending into the new year,” while blaming global headwinds for some of the euro area growth development issues. Basically, he is confident that Eurozone growth will resume, but not any time soon.
EURUSD reacted by retreating from its pre-press conference peak of 1.1287 down to 1.1231 where it found support from the minor uptrend line, intact since the beginning of the month. USDCAD rallied from 1.3322 to 1.3357 but it ran out of steam as WTI oil prices traded firmly above $64.00/barrel.
US March inflation rose 0.4%, a tad higher than the 0.3% forecast while easily beating February’s 0.2% result. The year over year increase was 1.9% with about 40% of the increase due to higher energy costs. The news underpinned the US dollar which moved higher against the major G-10 currencies except JPY and GBP which were unchanged from the New York open.