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Forex pairs in this Article » EUR/USD (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mistubishi UFJ notes that the euro rebounded yesterday following a speech from ECB President Draghi in which he stated that “don’t try to infer anything from what I say, anything about the possibility of negative rates” while also stressing that there’s no more news” since their last policy meeting.

Key Quotes

“Negative rates were discussed at their last policy meeting, after which President Draghi stated that the ECB is technically ready to introduce negative rates if required.”

“The release of the disappointing euro-zone PMI surveys for November continued to highlight that the economic recovery remains weak and fragile which may require further monetary easing next year.”

“The euro-zone composite PMI survey unexpectedly declined by 0.4 point to 51.5 in November, which Markit noted was consistent with real GDP expanding by 0.2% in Q4.”

“The main area of concern was the performance of the French economy which may contract again for the second consecutive quarter in Q4. In contrast, the German economy continues to lead the economic recovery.”
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