A series of wild bounces in the euro follows Thursday's European Central Bank meeting as traders replace joy at Mario Draghi's surprise easing measures with fear that there might be little more ECB easing to come. Julian Satterthwaite reports.
European Central Bank chief Mario Draghi sparking market mayhem after muddling his messages. A bigger than expected drop in rates, and a pledge to print even more money, supposed to drive borrowing costs lower, and weaken the euro - a boost to exporters. But then Draghi said this: SOUNDBITE (English) MARIO DRAGHI, PRESIDENT, EUROPEAN CENTRAL BANK, SAYING: "From today's perspective and taking into account the support of our measures to growth and inflation, we don't anticipate that it will be necessary to reduce rates further." That overshadowed all Draghi's other announcements, and sent the euro and borrowing costs the wrong way. (SOUNDBITE) (English) PETER CARDILLO, FIRST STANDARD FINANCIAL CHIEF MARKET ECONOMIST, SAYING: "That I think dampened market enthusiasm. It certainly sent the euro sky-rocketing against the dollar. And as a result, it weighed on stocks." The single currency holding onto its big gains in Asia overnight. Bond yields also higher after 24 hours of wild swings. Stock markets largely flat as Draghi's mixed messages left traders nonplussed. Many also voicing the fear that central banks like the ECB are running out of ammo. (SOUNDBITE) (English) JANE FOLEY, SENIOR FX STRATEGIST, RABOBANK, SAYING: "If extraordinary monetary policy was meant as a bridge ... well, we've got to be fearful now that without these structural reforms, with domestic demand getting going, that these extraordinary monetary policies were just a bridge to nowhere, and I think we do have to be quite concerned about that." Yet it could all be a misunderstanding. Draghi emphasising that he could change his mind, if the facts change. Next time though, the ECB chief may want to choose his words more carefully.