While markets are awaiting the ECB, the below charts are worth a quick review.

ECB’s balance sheet has as everybody knows expanded over past years. The problem is that despite the QE, the underlying economy isn’t kicking off. Latest stats out today show that PMIs in Euroland continues to deteriorate.

Why not blame the yellow vests Draghi as French PMI implodes further?

The Euro has been trading weak over past sessions. Note the channel since November lows. A possible break below the channel floor would not be pretty.

Interestingly enough, the EURUSD 1-month ATM volatility is rather calm.

Draghi, the stage is yours.

Source: charts by Bloomberg