Over-promise and under-deliver appears to have been the Draghi meme as the ECB chief’s loss of control of market front-running has left traders rapidly reversing their buy-the-rumor positions. EUR/USD is spiking higher, Bund yields – most focused at the short-end – are surging, DAX is dumping, and US equity and bond markets are being sold. USD weakness has sparked gold and crude strength. We are gonna need a lot more jawboning in the press conference to save this…
Oil loves the weaker USD, stocks and FX carry not happy, Treasuries dumped on Bund arb…
and PMs are bid on weaker USD…
This is what it looks like when doves cry….
