Draghis’ last bluff! Market Whispering (german Video)

Yesterday Draghi tried a big bluff for the last time in his tenure: allegedly endless QE until inflation reaches just below 2%. But at the same time the ECB can continue with its QE for a maximum of nine months (then the potential is exhausted. It can buy a maximum of 33% of a bond maturity and Draghi himself has admitted that this upper limit cannot be discussed). As we see today, the ECB is achieving the opposite of what it wants. It is pushing down bond yields and thus inflation expectations. What it actually wants to push up. The currency market seems to have seen through the bluff, or why else can the Euro rise significantly after an initial fall?

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