Submitted by Tyler Durden: It was shaping up like the perfect overnight ramp following yesterday's Goldilocks election result... and then Mario Draghi opened his mouth.
- DRAGHI SAYS DEBT CRISIS STARTING TO HURT GERMAN ECONOMY
- DRAGHI SAYS GERMAN RATES LOWER THAN THEY WOULD BE OTHERWISE
- DRAGHI: CRISIS MAKING GERMAN INTEREST RATES VERY LOW
- DRAGHI SAYS ECB'S OMT IS NOT DISGUISED FINANCING OF GOVERNMENTS - correct: it is quite overt
EURUSD has now forgotten Germany is in recession, soars on continued Greek lies
And it is as follow:
Germany, which is the economic dynamo of Europe, needs a weaker EURUSD to keep its export economy running. Period, end of Story. The problem is that the lower the EURUSD, the greater the implied and perceived EUR redenomination risk, which in turns send the periphery reeling, and will force first Spain, and then everyone else to eventually demand (not request) a bailout.Which is just the way Germany likes it, which in turn is as was said here 5 months ago.
Check to Draghi.