Draghi is nervous because the dollar has begun to fall, messing up his plan to withdraw stimulus from an economy which is increasingly more dynamic.
US economy performance
Not everything is clear through a crystal ball. The Fed is in the process of “normalising” interest rates, but one has to ask whether anyone really believes this…In other words, it appears the market is not convinced that the economy is getting stronger, nor that the inflation rate is hugely threatening.
Francisco Vidal | The emphasis put on the Federal Reserve’s actions and the US’ economy’s favourable performance over the last few years led to the debate over the possibility of the euro and the dollar reaching parity, which gained momentum at end-2016 and at the start of 2017. But the euro’s fundamentals are currently better than expected and, in the future, can count on the support of the ECB.