All eyes on ECB as Mario Draghi makes his last appearance…
Market participants will focus on the latest European Central Bank announcement today which will be President Draghi’s last appearance as the top man. Draghi’s reign has taken him on an interesting journey with the stand out period the Eurozone sovereign debt crisis. This was where Mario is deemed to have ‘saved’ the euro with his “Will do whatever it takes…” statement. The central banker also was responsible for reducing Eurozone interest rates down to zero and lower.
President Draghi’s time will come to an end today at his last press conference. This follows on from his previous announcement where he relaunched a quantitative easing package in which the central bank will purchase €20 billion of government bonds for an unlimited period of time, essentially until inflation is at or around target and growth and employment are stable. As a result, today’s announcement will be mostly ceremonial, no doubt Draghi will reminisce on his tenure as President.
Outside of today’s ECB event, global flash PMIs will be another area of focus, especially in the Eurozone. In addition, US durable goods orders will be another important release for market observers. This data arrives just under 1 week away from another Federal Reserve announcement where there’s pressure on Jay Powell to cut interest rates further.
Written by Viv Savani. 8:50am, October 24th 2019
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