ECB Underwhelms Calls, EUR Overwhelms Sellers

//ECB Underwhelms Calls, EUR Overwhelms Sellers

Draghi underwhelmed in the delivery of the ECB easing package, leading to (eventually) sellers being overwhelmed by the buy-side pressure. In the end, even if this time the cleanout of weak-handed longs went deeper than the last ECB disappointing meeting on July 25th, it was Deja Vu all over again (sell the rumor, buy the fact), as the market could not justify such a depressed EUR valuation after the ECB did the bare minimum to satisfy the overly dovish expectations, judging by the EUR behavior in recent weeks. The Swissy, this time detached from the shackles of its over-dependence in ‘risk-on’ flows, manage to find … (full story)