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EUR: euro slides on Draghi’s dovish comments

By Ricky Bean April 7th, 2017

European Central Bank President Mario Draghi’s dovish comments caused the euro to slide yesterday. Just because we get asked sometimes, a dovish tone refers to someone or something promoting monetary policies that involve low interest rates.

Draghi stated that there needs to be further economic confidence before the current path can change. On the basis that the Eurozone has seen pretty positive data throughout 2017 so far, markets are hoping for an interest rate hike in 2018 and QE tapering to start this summer. As this was already priced in, Draghi’s comments put pressure on the single currency.

No significant economic data releases are scheduled in the Eurozone for today. Therefore, much of the focus will be on US non-farm payrolls.