Draghi's hawkish rellent this morning has led to a wave of position unwinds, and moments ago the EUR spiked as stops were triggered, jumping to fresh a 9 month high of 1.1321.
EURO EXTENDS GAINS VS U.S. DOLLAR, HITS FRESH MORE THAN 9-MONTH HIGH OF $1.1321
The rise in the European currency comes less than an hour before Janet Yellen is expected to be likewise hawkish, even though the USD is so far taking on some heavy water, and the weakness may have been accelerated moments ago when Fed's harker suggested that not only could inflation be measured incorrectly, but that it is possible "we are enterting a low inflation world."
HARKER: THERE IS AN ACTIVE DEBATE ON WHETHER WE ARE MEASURING INFLATION CORRECTLY, IS POSSIBLE THAT WE ARE ENTERING A LOW INFLATION WORLD
HARKER: MAY REVISIT RATE VIEW IF INFLATION MOVES AWAY FROM GOAL
HARKER: FACTORED IN NOTHING IN TERMS OF FISCAL POLICY CHANGES
Which may means that Europe, with its lethargic GDP, may end up being the fastest growing economy after all.
For now, Euro longs are quite happy with this latest shift in sentiment.
Authored by: zerohedge.com