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7 Mar 2014
Flash: Draghi's nonchalant attitude - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained felt that one area that Draghi can be pushed back against is his arguably too nonchalant attitude toward deflation.
Key Quotes:
"He seemed to attribute it to the fall in energy prices, which would not explain the low core rate (1.0% Feb)."
"Also, he attributed some of the downward pressure on the euro's strength. The only thing that should matter here is the euro's valuation on a trade-weighted basis compared with long-term averages. On a trade-weighted basis the euro is about 2% above its 5 and 10-year moving averages."
Key Quotes:
"He seemed to attribute it to the fall in energy prices, which would not explain the low core rate (1.0% Feb)."
"Also, he attributed some of the downward pressure on the euro's strength. The only thing that should matter here is the euro's valuation on a trade-weighted basis compared with long-term averages. On a trade-weighted basis the euro is about 2% above its 5 and 10-year moving averages."