Draghi speech: FX appreciation caused CPI projection cut

Mario Draghi, President of the ECB, continues to make comments on the monetary policy, with key headlines, via Reuters, found below:

• Decline to reflect base effect, energy prices
• Yet to see convincing pick up in underlying inflation
• Underlying inflation expected to rise gradually over medium term
• FX appreciation caused CPI projection cut

ECB Projections:

• 2017 growth 2.2% vs +1.9% previously
• 2018 growth unchanged at 1.8%
• 2019 growth unchanged at 1.7%

Inflation:

• 2017 inflation unchanged at 1.5%
• 2018 inflation 1.2% vs 1.3% prior
• 2019 inflation 1.5% vs 1.6% prior

Key notes:

EUR/USD eases from tops on steady ECB, near 1.1980

The single currency stays within range after the European Central Bank left its monetary policy intact at today’s meeting, with EUR/USDaround the 1.1970/80 band.

EUR/JPY unfazed around 130.40 post-ECB

The EUR/JPY cross trimmed some of its early gains and retreated back below mid-130.00s post ECB announcement. 

ECB's press conference

Following the ECB´s economic policy decision, the ECB President gives a press conference regarding monetary policy. His comments may influence the volatility of EUR and determine a short-term positive or negative trend. His hawkish view is considered as positive, or bullish for the EUR, whereas his dovish view is considered as negative, or bearish.