Euro Traders Tell Draghi That ECB’s Policy Is Going Nowhere Fast
- Currency stuck at $1.10 even after pledge for more stimulus
- ‘Fatigue in terms of what central banks can do,’ Manulife says
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Euro traders are sending Mario Draghi a clear message: Monetary policy is reaching a dead end.
Just look at how the world’s most-traded currency pair has done this year. Its 200-day moving average has been stuck around $1.10, and it has registered the smallest move of any of the major currencies. All the while, Draghi and the European Central Bank delved deeper into negative interest rates and more aggressive bond-buying -- policies that might typically debase the euro.