Market Reaction after Draghi speech – Gravity Bites As Draghi Serves Cold Plate Of Epic Disappointment

By | August 2, 2012

As Draghi began to speak the EUR rallied, EGBs rallied and ES rallied – last minute hopiness wrung out of the system, but as soon as he explained that his plan to promise a plan which plans to promise a solution was nothing but another promise and not an actual plan, so everything reversed.

  • S&P futures are  -17pts from pre-Draghi
  •  Gold back under $1600
  •  USD is ripping higher
  • Treasury yields are down 8bps from pre-Draghi,
  • EURUSd is perfectly unch at 1.2275 after trading up over 1.24 as he began.
  •  Spain and Italy have given back the immediate euphoria with Italy now 20bps wider from pre-Draghi and Spain +10bps (though still -60-80bps from before his comment last week).

EURUSD

 

Euro Government Bonds cracking wider…

 

and across asset classes – its derisking reality:

but a lot more gravity to go yet..

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