The devil is in the leakage
In a desperate attempt to appear angry, the latest leak of Draghi’s comments came out on Monday. Speculation that the ECB thinks that it is not monetization, if only bonds with a maturity of three years or less are monetized, the central bank apparently tried to add more ammunition in its war against Germany, sending the EUR/USD higher on the news. The “euphoria” didn’t last long though, as the markets completely disregarded Draghi’s desperation, despite him threatening that it is the very survival of the euro that is at stake, causing the EUR/USD to retrace all gains as a matter of minutes. Bottom line: Mario “Damp Squib” Draghi is increasingly losing his credibility.