Saxo Group Videos

Beecroft: Mario Draghi is "out of ammo"

Rates have now hit rock bottom in the Eurozone with ECB President Mario Draghi saying they will go no lower. The new benchmark rate is just 0.05%. Are we seeing ECB running out of options or has it done just enough?

Chairman of Saxo Capital Markets Nick Beecroft says Draghi is "out of ammo" with Eurozone inflation at 0.6%.

Leaked in advance was the 500 Billion Euro bond purchase plan, Mario Draghi denies this is a form of QE so we are left with Quantative Easing still sounding more like 'Quantative Teasing'. Nick explains why he believes the markets will "bully" the ECB into QE before the end of this year. It's worth noting that the ECB President admitted that QE "was discussed".

What now for traders? Nick says the Euro is unlikely to drop further than it fell today, a "knee jerk reaction" in his opinion, with the Euro likely to now stay "stubbornly strong".

04:23 minutes
Tags: bond purchase, bonds, currencies, draghi, draghi ecb, draghi ecb comments, dragon, dragon's den, easing, ecb, ecb action, ecb balance sheet, ecb euro, ecb inflation target, ecb meeting, ecb policy, ecb rate, ecb rate cut, ecb rate decision, ecb rate', ecb rates, economy, equities, equity, eur, eur usd, eurchf, eurgbp, eurjpy, eurjpy price, eurnok, euro, euro area, euro crisis, euro dollar, euro dollar strength, euro economy, euro gdp, euro growth, euro high, euro inflation, euro pound, euro rates, euro rises, euro sterling, euro strength, euro weakens, euro yen, euro yen trade idea, euro zone, euro-dólar, eurobonds, eurocrisis, eurodebt, eurodollar, euroinvestor, euronext, europa, europe, europe crisis, europe gdp, europe growth, europe recession, european, european banks, european central bank, european central bank rate, european central banks, european commission, european economy, european growth, european monetary policy, european recession, european recovery, european union, europeo, eurozona, eurozone, eurozone crisis, eurozone economy, eurozone euro, eurozone gdp, eurozone growth, eurozone inflation, eurozone recession, eurozone recover, eurozone recovery, eurusd, eurusd bearish, eurusd trade, eurusd trade idea, foreign exchange market, forex, forex idea, forex market, forex markets, forex saxo bank, forex trading, fx, fx crosses, fx forex, fx market, fx markets, fx options, fx strategy, fx trade, fx trade idea, fx trading, fxforex, monedas, monetary, monetary policy, money, qe, quantitative easing, rates, rates decision

Switch to