This is just the beginning of serious defending of Euro by the European officials as they will have to prove that they have enough ammunition in their sleeves to defend their currency. Previously, Angela Merkel made quite a few futile attempts to defend the European currency, but her sermons was not enough to give solace to ailing currency due to Euro region’s uncountable negative factor.
After Merkel’s failure to defend Euro-zone currency now it is Superman Mario Draghi turn to try out his tricks, but this is not the magician job, neither he carry’s the magic wand to flip the ongoing financial mess.
Japan is good case example that has made every effort to weaken its currency, but has completely failed to succeed despite decade of recession, intervention and quantitative easing.
Europe is a different story with many strings attached faced with contagion effect and every member countries are faced with different types of internal and external factors.
Time will soon prove that words/verbal interventions are never enough and Mario will have to deliver by taking action. 2-statemants by two- senior officials in 2-days is certainly not good sign because there is surely something wrong and Europe may be faced with bigger challenge that Mario and his clan is aware.
Experience also suggests that in such a situation market always throws challenge to the authorities and I will not be surprised if Mario and his companion are faced with similar situation sometime soon.