EUR soars, DE30 craters as Draghi ignores recession risks

The ECB extended its forward guidance at today’s meeting but president Draghi saw no need to discuss rate cut as he saw no risk of deflation and very small risk of recession. Markets saw this interpretation as underwhelming which led to a sharp drop in European equities, especially DE30, and to a rally on EURUSD – the pair is retesting the 1.13 handle for the second day in a row. Traders must also be aware of tomorrow’s NFP report (2:30pm CET) in the US.  

Morning wrap
Daily summary: Global equities rally led by financials
Inovio’s stock plunged as COVID vaccine trial is put on hold
Coronavirus: market update
Economic calendar: Brexit and labour data in focus this week
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