Euro isn't strong enough for Draghi to talk it down
ECB chief Draghi is unlikely to talk the euro down this week as the currency isn't that strong. It is the dollar that is weak. EUR/USD is yet to recover half the losses that evolved under the ECB's dovish monetary policy having only narrowly avoided a drop below parity early this year. Adding to the notion that the euro and euro zone were failing, a move below parity would likely have resulted in intervention. The ECB has purchased euros at sub-parity levels, buying shortly after the euro's launch and again versus the yen to assist the BOJ a few years later. Notably, the ECB has not sold euros before. The euro is also still weak versus the timeline of ECB policy actions. EUR/USD traded a 1.3213-1.4168 range May 2009 when the buying of covered bonds/corp debt was announced. It was close to 1.4000 when Draghi promised all to save the euro zone, 1.36 when a negative deposit rate was introduced and 1.2109 Jauary 2015 when the expanded asset programme began.